It is widely believed to be the world's only population centre exclusively made up of Jewish people outside of Israel and the United States,[2][3][4] and is likewise considered to be the last surviving shtetl.

[5][6] Located across the Qudyal river from the city of Quba, it is the principal settlement of Azerbaijan's Caucasus Jewish population;[7] the most widely spoken language in the village is Judeo-Tat.

[8] Other sources attribute the name of Qırmızı Qəsəbə to the protected status that it received during World War II, when its residents were shielded from potential persecution in light of Nazi Germany's invasion of the Soviet Union.

[9] The first Jewish settlement in the area was named Kulgat and was located on the left bank of the Gudjalchay River, just a few kilometers from present-day Qırmızı Qəsəbə.

Old gravestones in the Kulgat area, as well as other evidence that was damaged during the attacks of Nadir Shah in the early 18th century, serve as proof that a Jewish population had been established and lived here.

Fatali Khan, highly appreciating the loyalty, wisdom, and industriousness of the Mountain Jews, allowed them to work in agriculture, trade, and crafts, which was uncommon due to the historic persecution and discrimination Jewish people had faced.

[6] The town has had an influx of financial support from residents’ relatives living in Israel, and is the home a new synagogue, the Bet Knesset.