Fontainhas is Panaji
's oldest and most interesting place, which is bordered on the east by the Creek of Ourem and the west by the rising hill of Altinho
. Since this area has a number of springs, it got the name 'Fontainhas'. Another version is that the neighborhood was supplied with water from a reservoir built by the the Governor, Viscount of Ourem, from the Fountain of Phoenix, and so the place came to be called Fontainhas. Picturesque streets and quaint buildings with projecting balconies are interesting to look at. Many of the buildings in the street have retained their traditional coat of ochre, pale, yellow and green or blue thus giving an impression of being in Portuguese Goa. The Chapel of St Sebastian
, built in old colonial style, is situated to the southern end of this section.