Until the 1990s, Å was mainly a small fishing village specializing in stockfish, but since then tourism has taken over as the main economic activity. The town features the Lofoten Stockfish Museum and the Norwegian Fishing Village Museum as two big tourist attractions. In May 2004, Å became the starting point of a cycling trip from A to B.
The village is first mentioned in 1567. The name is from Old Norse á which means " river". The name was spelled Aa until 1917 when the Norwegian language reform changed the letter aa to å. The village is sometimes referred to as Å i Lofoten to distinguish it from other places named Å.