Setúbal (sətōˈbəl) [key], city (1991 pop. 83,548), capital of Setúbal district, S central Portugal, on the Bay of Setúbal at the mouth of the Sado River, in Estremadura. One of Portugal's most important ports, it handles wine, oranges, and cork. It has a fishing fleet, shipyards, chemical and glass plants, and is a major sardine-canning center. In 1979 a highway between Lisbon and Setúbal was opened. Setúbal was a royal residence (1481–95) under John II.