[1] San Marcial was founded circa 1854 by Pascual Joyla, who built a house on the east side of the Rio Grande and began selling produce and firewood in Fort Conrad, to the north.

A small community grew up around Joyla's house, taking its name from the third century Frenchman, Saint Martial of Limoges.

According to the Socorro Chieftain of 17 August 1929:[1] Flooded Rio Grande Devastates Entire Towns; People Escape in Night Clothes – The first disaster occurring at 2:00 o'clock Tuesday morning (Aug. 13) when the highway bridge at San Acacia gave way sending a five foot flood through the town, giving many only time to escape to the foot hills to the west in their night clothes.

Orchards, alfalfa fields with other valley crops in this district as well as at Polvadero and Lemitar are reported a total loss.

Today, a cemetery remains the only obvious sign of the former settlement, although parts of the Santa Fe Railroad's roundhouse can still be found if one knows where to look.