The Church of the Beheading of St. John the Baptist in Krestovsky was built with the funds of parishioners, especially thanks to merchant V.S. Ivanov. In the late 19th century, it was reconstructed, adding side chapels and a bell tower. The founders of the village of Kresty were peasants from the neighboring village of Maslyanskoye, who moved here with their families and farms. They settled on the new lands in the first third of the 19th century. Due to its convenient location and rich natural resources, the settlement quickly grew into a large village. Initially, the residents did not have their own parish and belonged to the parish of the village of Maslyanskoye.

According to legend, the peasants discovered an icon of the Beheading of St. John the Baptist at a birch stump on the outskirts of the village. The icon was attempted to be moved to the Maslyansk church several times, but it always returned to its original place. A spring appeared at this site, and news of the miracle spread throughout Russia. A large cross was erected here, and the village began to be called "Kresty."

A few years later, a wooden chapel was built at the site of the cross, where the icon was kept. In the 1860s, it was replaced with a stone one with an altar in honor of the icon of the Beheading of St. John the Baptist. Every year on August 29, a procession was held from the Maslyansk church, and many people gathered to venerate the icon, which was considered miraculous. Each year, more and more pilgrims came here, and merchants brought goods for them, which marked the beginning of a fair. Researchers and travelers, such as hieromonk Makary and V.P. Parshin, mentioned the fair.

In 1857, the Krestovsky settlements were granted the status of a village. The fair, named Ivanovskaya, became the third largest in Russia after Nizhny Novgorod and Irbit. In 1880, goods worth 12.2 million rubles were brought to the fair. Moscow and Nizhny Novgorod merchants traded here, and there were various trading rows and entertainment for guests.

The parish of the village of Krestovsky was separated from the village of Maslyanskoye, and it included the villages of Verkhozino and Kamyshevka. The population of the parish reached two thousand people. Due to the increase in the number of parishioners and visitors, it was decided to build a stone church. The main initiator of the construction was nobleman Vasily Stepanovich Ivanov. The church was consecrated on August 20, 1872, in honor of the icon of the Beheading of St. John the Baptist. It resembled a large chapel and did not have a bell tower, instead, there were posts with bells. Later, side chapels were added, and a tall bell tower was erected.

The central altar of the church was consecrated in the name of the Beheading of St. John the Baptist, the northern in the name of St. John Chrysostom, and the southern in the name of the Annunciation of the Most Holy Theotokos. The church was distinguished by its well-maintained appearance and beauty, and its main shrine was the icon of the Beheading of St. John the Baptist. A stone fence with a wrought-iron grille was built around the church.

A stone chapel was also built in the village in memory of the coronation of Their Imperial Majesties in 1896. There was also a wooden chapel in the village of Verkhozino in honor of the Venerable Zosima and Savvatiy.

During the Soviet era, the Krestovskaya fair operated until World War I but then fell into decline. In 1918, the vacant buildings were used for a prisoner of war camp. In 1930, it was decided to destroy the holy spring and the church. The chapel was demolished, and the spring was filled with bricks. The church survived, but attempts were made to demolish the bell tower with tractors. The last baptism in the church took place in 1932. For a long time, the church was used as a grain storage facility, which led to damage to the fresco "The Appearance of Christ to the People."