Despite being nearly four hundred years old (Willemstad was founded in 1634), the city is remarkably well preserved and boasts some of the best Dutch colonial architecture in the world. The Handelskade, which follows the narrow patch of land on the Punda side of St. Anna Bay, was once the main commercial street in Willemstad, as merchant vessels could effectively come right up to the store fronts. Now, most shops have moved inland, with the street now dominated by cafes and restaurants. However, the Penha department store (the yellow building at the far right, which dates from 1708) is still located along the Handelskade.

The bright colors of the Handelskade (and of Curaçao in general) are the result of a decree by an early Dutch governor requiring buildings to be a color other than white (although white could still be used as trimming). Allegedly, the governor suffered from terrible headaches and believed that they were made worse by the sun reflected off of the white buildings that had dominated the island. Whether or not the story is true, colorful buildings dominate the island to this day.