The city of San Sebastian was founded at the end of the 12th century by King Sancho el Mayor of Navarra, and for a long time it was nothing more than a big fishing village. Because of its strategic location, with easy access to the sea on the north and the natural protection of surrounding mountains, it eventually became a military stronghold. Throughout the centuries, San Sebastian saw many battles and was besieged several times. Nevertheless the city had already become a vital trade center, taking advantage of its location for commerce with France, Benelux, England, and eventually America.

One of the most serious battles took place in 1721 between English and French after which the French occupied San Sebastian for a few years. For many years after this critical battle, the city enjoyed peace and prosperity.

But the epoch of tranquillity was eventually interrupted by the Peninsular War and a battle between Napoleon`s troops and Anglo-Portuguese forces in 1813. The city was reduced to ashes and then slowly rebuilt by the 2500 residents of San Sebastian.

Sixty years later San Sebastian, which in the Basque language is known as Donostia, was named capital of the province of Gipuzkoa. The change of status of the city and industry and infrastructural development resulted in another period of prosperity. The city walls were demolished and San Sebastian expanded towards what is today the Gros quarter.

The cosmopolitan character and fame of one of the best spa resorts San Sebastian was due to the royal summer residence Palacio de Miramar, attracting Europe`s upper-class to try their luck at the casino, built in 1887. The golden age of the city occurred during the First World War. While the rest of Europe felt into chaos, San Sebastian became the favourite destination of European nobility.

This splendour broke off abruptly with the arrival of the dictatorship of the general Primero de Rivera and the prohibition of gambling.

Now, although there are no really old historical part of the city because of several fires that devoured ancient monuments, the city is again both a famous commercial center and a tourist resort.