This area unexpectedly gained independence in 1440 after Pope Eugene IV, embroiled in a struggle with the Council of Basel, made a sale of territory to the Republic of Florence. By error, a small strip of land went unmentioned in the sale treaty and its inhabitants promptly declared themselves independent. An early centre in Italy for tobacco production, Cospaia eventually evolved into a commerce haven which, in 1826, was divided between Tuscany and the Papal States. Each citizen was awarded a silver coin by the church to help convince them to continue farming tobacco. Today, Cospaia is a hamlet (Frazione) of the comune of San Giustino in the Province of Perugia.