[4] The name, "de los Colorados", refers to a local ethnic group, the Tsáchila, and the custom of men in that tribe to dye their hair with extract of the achiote plant; hence "Santo Dominigo de los Colorados" or "Santo Domingo of the Dyed."

This group, which is indigenous to the area, is recognised with a substantial statue near the town center.

It is important stopping point on the road from Quito to the Pacific coast.

The city is also the seat of the Roman Catholic Diocese of Santo Domingo de los Colorados.

Roads between Quito and coastal cities such as Esmeraldas and Manta are often washed out and require frequent work.