Cacabelos was rebuilt in the early 12th century under Diego Gelmírez, bishop and later archbishop of Santiago de Compostela. In 1138 Alfonso VII granted the town to the archbishop of Santiago, and Cacabelos remained ecclesiastically dependent on the distant archdiocese until the late 19th century.
Cacabelos has also long been a centre of wine production in El Bierzo and is now home to the regulatory council for the Bierzo wine denomination.
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