This magnificent plaza, facing the river, is the beginning of Lisboa's downtown. It is also known as 'Terreiro do Paço', meaning 'Grounds of the Palace', relating to its function before the Great Earthquake of 1755. The upper floors of the yellow buildings surrounding the square are mainly used as government offices, while the lower floors often contains cafés and restaurants. King Josef I, who ruled during the reconstruction of Lisbon, is seen as a mounted statue in the middle of the square, while the arch facing north is a tribute to the explorer Vasco da Gama.