[2] Alagón del Caudillo was created as a settlement village, mainly to accommodate the population of Granadilla and Martinebrón which, with the construction of the Gabriel y Galán reservoir would be buried under the waters.
Next to Alagón, other colonisation settlements were built, such as Valrío, El Batán, Puebla de Argeme and Rincón del Obispo.
On 18 March 1955, the Decree of the General Colonisation Plan for the Gabriel y Galán irrigation area was approved and published in the Official State Gazette on 16 April.
[3] On the one hand, major hydraulic works were carried out, such as the Gabriel y Galán reservoir (whose construction was already advanced), the Valdeobispo dam, canals and networks of irrigation channels.
On the other hand, there were also no services of any kind, and the first harvests were lost because the canalisation network was not finished, forcing several families to leave the village due to the bad economic situation.