The construction of the Church of the Exaltation of the Holy Cross with an altar in honor of St. Demetrius of Thessalonica, funded by Nerekhta merchant and city mayor Dmitry Prokofyevich Simonov, was completed in 1788, and the consecration took place in 1793. The work was carried out by local stone masons, likely under the guidance of the renowned architect S.A. Vorotilov, as indicated by the architectural features of the building. In particular, the bell tower, characteristic of Vorotilov, includes elements from two previously built churches in Nerekhta. The second tier and drum with a spire resemble the design of the bell tower of the Transfiguration Church, while the bell-shaped completion of the ringing tier echoes the Resurrection Church. The interiors of the Church of the Exaltation and the upper Transfiguration Church are also designed in a unified style. A high arch conditionally divides the temple into a central part and a refectory. A distinctive feature of the church is the elongated light octagon oriented along the north-south axis. The original architectural concept was altered by the client, who decided to add an altar in honor of St. Demetrius of Thessalonica. The altar, adjoining from the south and west, moved the bell tower to the center of the building, resulting in the loss of the entrance to it. Despite the unified Baroque design of the facades, the altar with a rounded northeast corner and cylindrical drum with an onion dome looks somewhat alien in the overall composition.

In the church, beneath numerous layers of records, some wall paintings partially survived, executed in oil in 1810 by the artist from the town of Bolshie Saly Alexei Timofeyevich Demidov. In the main volume on the side panels, the great martyr Barbara and Sergius of Radonezh are depicted performing a requiem at the grave of his parents. On the walls of the refectory, images of saints Alexander Nevsky and Mary of Egypt are presented, as well as the composition 'Deposition from the Cross.' In the vault of the refectory, four scenes from the Gospel cycle are depicted: 'Resurrection,' 'The Myrrh-bearing Women at the Tomb of the Lord,' 'The Appearance of Christ to Mary Magdalene,' and 'The Assurance of Apostle Thomas.' On the supports of the arch are figures of St. Nicholas the Wonderworker and St. Pachomius of Nerekhta. In the vault of the altar, the Lord Sabaoth is depicted, and in the Holy Place, Christ the Almighty. On the ceiling of the narthex, a large image of Sabaoth on a cloudy background is painted, surrounded by symbols of the evangelists. Western European samples were used for the narrative compositions. Unfortunately, due to later restorations, almost nothing remains of the original paintings. Judging by the best-preserved image of the great martyr Barbara, the master A.T. Demidov aimed to work in an academic manner.