Named after the nearby river Guadiana and after Francisco Franco, also known as Caudillo, it was one of the villages founded by the Instituto Nacional de Colonización during the Francoist Spain.

The left parties of PSOE and Izquerda Unida, following the Historical Memory Law, called for abstention considering the name illegal.

The town lies on a plain, rich in canals and rural lands, between the rivers Alcazaba and Guadiana.

Nearest settlements are Pueblonuevo del Guadiana, Valdelacalzada, Alcazaba, Montijo and Puebla de la Calzada.

[10] One of the sights of the town is the Catholic church dedicated to María de la Soledad, belonging to the Archdiocese of Mérida-Badajoz.