In September 1905, 104 families of Russian Molokans arrived in Lower California via the USA. They settled in the northwest of the current municipality of Ensenada and in 1907 purchased 13,000 acres of land in the Guadalupe River valley on credit.

Aiming to preserve their religious rites and cultural traditions, the settlers lived quite separately from the local population, engaging in agriculture and livestock farming. The colony they established is estimated to have become the most successful among other Molokan settlements in North America. However, in 1958, a highway was built through these lands, and some Molokans left their established homes. Those who remained in Ensenada and their descendants are now primarily involved in grape growing, winemaking, and the hospitality and tourism business. There is also a Molokan museum here, supported by local authorities.

Upon entering the settlement, the houses with sloping roofs along the only street immediately catch the eye. This is unusual for these places, but the Molokans built them based on their Russian experience, as such roofs are easy to clear of snow. At that time, they did not know that it never snows here.

Each family had its own garden and vegetable patch. The Molokan settlement represented a village where all the houses faced a central street. Although the land was sold into private ownership, the economic activities of the colony were based on communal principles.

According to the Molokans, the Bibaev brothers, their ancestors sowed wheat, alfalfa, barley, and were the main suppliers of flour for the nearby city of Ensenada. The Russian Molokans also raised livestock, poultry, and prepared vegetable and fruit preserves, as is customary in Russia.

Notably, in the 1960s, Mexican authorities changed the name from 'Russian Colony Guadalupe' to 'Francisco Smarco,' but locals still refer to it by the old name.