Oecussi acted as capital of Portuguese Timor until a hostile local Kingdom and the prospects of a better harbour caused the Portuguese to shift their capital to Dili in the 1760s.
It is also a powerful source of pride for the people of the Enclave. (http://www.estatal.gov.tl/Documents/District%20Development%20Plans%20and%20Profiles/Oecusse/District%20Profile%20Oecussi%202002.pdf)