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In the last part of the XIV century in the region of Serrabus it was erected the village of Villanova Castiadas; the village became desolated at the end of 500 century because of frequent plague and malaria epidemics for a period that lasted approximately 350 years. After a long period of desertion, in the middle of 800 century the Ministry of Interior decided to create an agriculture penal colony with a double aim, make the prisoners discount their pains for the crimes committed and in the same time drain an unhealthy and marshy area which has been abandoned for years. 

On the 11 August 1875 30 prisoners coming from the Penal House of Saint Bartolomeo disembarked in the lonely beach of Sinzias Bay and advanced in the dense thicket. After a long roam through unknown places the group of captives guided by the general inspector of the prison Eugenio Cicognari stopped and established their first building on the hill called Praidis between two small rivers: Gutturu Frasca e Baccu Sa Figu.

The Penal Colony finished its existence only on 1953 with the birth of the E.F.T.A.S. Agency of Land and Agrarian Transformation of Sardinia (today the name is ERSAT). 

At the beginnings of the 50s the ETFAS tried to turn into effect the agrarian reform, it divided Castiadas in seven companies: Annunziata, Sabadi, Orteduso, Castiadas, Saint Pietro, Capoferrato and Tuerra ( the last two belonging to Muravera and Saint Vito). The ETFAS acquired approximately 8.000 HA and created  405 farms, decreased to 235 after the renovation of the 60’s in order to arrive to 216 in the 1968. 

In addition to the Seven Companies, in Castiadas were created new districts like Olia Speciosa and Annunziata which were a social point of aggregation among the owners of the farms, in fact there were schools, churches and entertainment clubs.

In the 60s a group of Italian refugees coming from Tunisia arrived in Castiadas and they settled down mainly in the villages of Sabadi, Orteduso and Saint Peter, becoming some time later owners of lands and farms and modifying with this event the social and cultural relationship among the settlement.   

Castiadas today is an Independent Village, established with the Law n. 24 of 11 March 1986, and it has been emancipating to the form of come other villages like Villaputzu, Saint Vito and Muravera.