Água Retorta is a civil parish in the municipality of Povoação, on the island of São Miguel in the Portuguese archipelago of the Azores. The population in 2011 was 489, in an area of 12.55 km<sup>2</sup>. Situated along the southeast coast, it is the smallest and most eastern parish in the municipality.
History
thumb|235px|left|The Church of Nossa Senhora da Penha de França was erected to replace an older hermitage constructed after the early settlement.
The early settlement of Água Retorta, which had its origin with the settlement of Faial da Terra, occurred with the reestablishment of colonists from old Povoação. Água Retorta became important due to the abundance of farms that existed in this territory. The place name, as Gaspar Frutuoso wrote, was inspired by a ravine "that twisted and turned", that by the 16th century developed into a land of many farms. The church is constructed of basalt and masonry, painted in white, with sculpted stone around the doorways, windows and belfry, in the Mannerist style typical of other Micalense churches.