The "Very Noble and Very Loyal City of San Roque, where Gibraltar lives on" (San Roque's official motto) was officially founded in 1706. However, this typical Andalusian white village was established by the Spanish inhabitants of Gibraltar on 4 August 1704.

The founding was an unprecedented historical event: a powerful Anglo-Dutch fleet, commanded by Admiral Rook, took Gibraltar Square and hoisted the Anglo-Saxon flag during the War of Succession.
Five thousand proud Spanish Gibraltarians rejected the British offer to stay in the city, leaving en masse and settling on this hill, where the old San Roque Hermitage, dating from 1508, was located, a short distance from the usurped city.

The inhabitants of Gibraltar brought all the belongings they could and their precious relics. Examples of the Gibraltar Spanish legacy is evident in the Flag of Gibraltar (1502), which is said to have been embroidered by Juana la Loca, or the Royal Charter (1502) issued by the Catholic Monarchs which granted titles, authorities and a coat of arms to Gibraltar. Also, the Church of Santa María la Coronada is home to numerous 16th-18th century statues brought from Gibraltar. Gibraltar's church archives from 1556 to 1704 are also preserved in the temple. The Historical Archive contains the municipal archives of the City of Gibraltar from 1502 to 1704.