Founded as a railroad village some distance from the old Indian town of San Juan de los Caballeros (now renamed Ohkay Owingeh),[5] it was named Española and officially incorporated in 1925.

In fact the name is a shortened form of Plaza Española ('Spanish town'), which likely was to differentiate it from the Tewa pueblo just to the south.

They built towns in the area, now called 'pueblos', four of which still exist: Ohkay Owingeh, Pojoaque, Santa Clara and San Ildefonso.

San Gabriel, close to modern Española, can thus be seen as the first capital city founded by people of European racial descent in what is now the United States.

[9] Oñate arrived in the Española area on July 11, 1598, at the confluence of the Chama River and the Rio Grande, where he established a camp at a place then called Yunque-Yunque.

[citation needed] Almost a century later, near the same region, Don Diego de Vargas established his villa at Santa Cruz.

[10] Prior to the arrival from Antonito, Colorado of the narrow gauge Denver and Rio Grande Railroad in 1880, the hamlet on the west-side of the Rio Grande was known as La Vega de los Vigiles in reference to the Vigil family who initially settled that area.

The earliest document found indicates that La Vegas de los Vigiles had been populated by 1751, over 100 years before the railroad's arrival.

[11] Later popularly known as the "Chili Line", this was part of an ambitious but unsuccessful proposal to connect Denver with Mexico City.

Their calls for continued rail service were at odds with the grim realities of the marketplace, which had for years rendered the "Chili Line" woefully unprofitable.

Although Española was an integral part of the saga of railroad construction in the West, it was destined to become one of the region's first notable communities bereft of its trains.

More modern business began to move into town, but the growth of Española had now expanded east across the Rio Grande.

[citation needed] Strip malls became visible in Española, the first being the 'Big Rock shopping center', founded by oil tycoon Roy Honstein.

Although a plaza never existed in Española before the railroads, it was built to pay tribute to the Spanish culture in the area.

[19] On September 18, 2008, Barack Obama, then a candidate for president, visited Española for a rally at the city's New Plaza in the Main Street district.

Recently, Northern New Mexico College has expanded its degree programs and made massive improvements to its campus, adding a new library and a new School of Education.

Due to a legal dispute with Jemez Mountains Electric Cooperative, Satview Broadband has suspended services in Española as of March 2016.

Española's restaurants and convenience stores are popular with travelers between Santa Fe and northern communities, as well as with local people.

The local fiestas are held in the summer to commemorate the Spanish colonization and introduction of Christian faith to the area.

There are many locations near Española that provide for outdoor activity such as hiking, biking, and river sports like rafting and kayaking.

[31] Española Public Library is located inside the Richard Lucero Center at 313 North Paseo De Oñate.

[32] Española serves as the setting for the 2023 black comedy series The Curse, which among other themes explores gentrification of the area.