Paulo Fabio Máximo, therefore, founded " Lucus Augusti", (XII year before Christ) named after the emperor . The city was to be the capital of the jurisdiction of Callaecia, incorporating northern Tarraconensis.
The name Lucus, where the name Lugo comes from, is a derivation of the Latin meaning sacred wood. Lucus Augusti is the sacred wood of Augustus. It may also go further back and derive from the name of the celtic God "Lugh", God of light, who was worshipped in this area in pre-Roman times.
Under their time, the city played an important role as a religious centre as the sacred city of Augustus in the Callaecia.