The economy is based on modest commerce, public employment, modest transformation industries, cattle raising, and agriculture. There is one dairy—JAU - Indústria de Laticínios Ltda. (22/05/2006). There were 35,400 head of cattle in 2006. The main crops were rice, corn, manioc, soybeans, and tomatoes. Most of the land is occupied by pasture for cattle raising.
The history of Jaupaci begins in the 1950s when diamonds were discovered in the region. Panhandlers arrived and settled on lands belonging to João Paraíba, who already lived there. The population increased and the first general stores appeared to cater to the miners. The settlement was called Monção do Pacu, after a diamond mining site. In 1958 it became a municipality, without being a district first, and changed to the name to Jaupaci, after the three rivers that cross its territory—Jau, Pacu, and Cipó.
