The traces of Minoan settlement in the Cove of Cambi Bay, the ruins of Hellenistic public baths in the Loutro (bath) site and the nameplace Palaia (ancient) are signs that the Diafani site has been chosen for settlement since the ancient times. Because of the Arabic raids, the inhabitants of the region were also forced to abandon their homes and take refuge in the mountainous and hard-to-access nearby Olymbos which maintained a castle around the central and highest part of the village .
In the end of the 19th century, when the sailing boats of the pirates were forced out by engine-powered battleships, the inhabitants of the castle in Olymbos took heart and moved down to settlements by the sea, just as the inhabitants of Korαki (village of Aperi) moved down to Pigαdia (officially recently renamed “Kαrpathos” and capital city of the island) during the same era.