On June 29, 1677, a serf peasant from Nikolskaya Sloboda, now the city of Nikolsk, Diomid Krokhalevsky discovered the icon of the Mother of God "Kazan" on the right bank of the Yug River, near the mouth of the Dunilovka River. At the site of the icon's appearance, he built a chapel and placed the icon there. After his death, his son Nikita Krokhalevsky fenced the chapel and lived there as a hermit for about twenty years, providing shelter to pilgrims who came to the miraculous icon. After his passing, the locals decided to build a church on the opposite side of the river to avoid flooding.

In 1712, the abbot of the Teplogorsk Mother of God Monastery, Mardarij, with the blessing of the Archbishop of Veliky Ustyug and Totma, Joseph, consecrated the Kazan Church in the newly established Dunilov Monastery. The monastery was poor, with a small number of monks, and the miraculous icon did not attract pilgrims.

In 1764, the monastery was abolished, but the icon remained in the Kazan Dunilov Church. In 1815, it was transferred to the Sretensky Cathedral in Nikolsk, after which it became known not only in the Vologda Diocese but also in the neighboring Vyatka and Kostroma regions. From June 29 to July 20, the icon was in the Dunilov Church.

After the monastery was abolished, the wooden Kazan Church became a subsidiary of the Proiskhozhdenskaya Andang Church, located 12 versts to the north. In 1815, the Dunilov Church was attached to the Sretensky Cathedral in Nikolsk. In 1857, a new wooden chapel was built at the site of the icon's appearance to replace the dilapidated one. The wooden Kazan Church, which is an architectural monument, is in a state of disrepair.