Santo Stefano was once an important pastoral center in the mountains, at an altitude of 1,250 meters east of L'Aquila. It was famous for its production of wool, known as carfagna, which was used in the clothing of the soldiers of the Medici army. But when the village came under Piedmontese rule, the taxes on wool and the new trade routes were a real blow. For almost three centuries the village was abandoned, until a wealthy Swiss patron fell in love with the place and decided to save part of it. Today, Santo Stefano is listed among the "100 most beautiful villages in Italy".

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