The settlement, founded around 1678 on the steep bank of the Vyatka River, was originally named Krasnaya Izgolov and from 1766 it was called Krasny Yar. In 1701, a wooden chapel was built in the village of Krasnaya Izgolov for the local icon. In 1718, by the decree of the Kazan Metropolitan, the village became the village of Rozhdestvenskoye Krasnaya Izgolov, where the first wooden cold church in honor of the Nativity of Christ was erected, which became part of the Urzhum district. In 1722, the first metric books appeared at the church. In 1749, a second warm wooden church in honor of Saint Demetrius the Myrrh-streaming was built in the village. According to the inventory of 1775, the village of Krasny Yar had an old dilapidated chapel, a cold Nativity church, and a sturdy Demetrius church. However, on January 24 of the same year, both churches burned down, leaving only the dilapidated chapel, where the surviving church items were placed in the altar area. On March 31, 1775, a decree was issued for the construction of a new wooden church in honor of the Nativity of Christ with an altar in honor of Saint Demetrius the Myrrh-streaming. By the decree of the Vyatka Spiritual Consistory on September 24, 1775, it was permitted to hold services in the chapel until the new church was completed. In the same year, at the request of the clergy and parishioners, it was allowed to convert the chapel into a temporary church and to build a stone church. Although the chapel was consecrated only on January 11, 1776, in the documents of 1775 it was listed as the wooden Nativity church, for which a new stone one was being built. In 1783, the first altar of the stone church in honor of Saint Demetrius the Myrrh-streaming was consecrated, and in 1795, the main altar in honor of the Nativity of Christ. In 1811, parishioners requested permission to build a stone bell tower instead of the wooden belfry. In 1822, due to poor construction quality and soil erosion, the old stone church was dismantled. In the same year, a decree was issued for the construction of a new stone church in a new location. In 1823 and 1832, the altars of the new church were consecrated, and in 1837, the cold church in honor of the Nativity of Christ. In 1845, the church was completely plastered and painted. In 1894, an exterior renovation of the walls was carried out. In 1910, the church was surrounded by a stone fence, where confession lists and metric books were kept. In 1922, church valuables were confiscated, and in 1938, the church was closed and repurposed as a school. Subsequently, the building was used as a grain warehouse, which accelerated its destruction. In 2001, it was concluded that the church was beyond restoration.