The first European contact with San Juan del Sur came when Spanish royalist Andrés Niño landed at the bay in 1523, in search of a way to access Lake Nicaragua from the Pacific Ocean. By the mid-19th century, as a result of the California Gold Rush, the town had become a very important port. North Americans who lived on the east coast of the United States would travel to California by boat, first heading south and crossing Lake Nicaragua and the country's isthmus, then continuing their journey from San Juan del Sur onwards and back upwards to San Francisco. Even Mark Twain passed through on this route. It was around this time (1852) that San Juan del Sur was first officially recognized as a city. Soon after, infamous filibusterer William Walker and his troops landed there, quickly moving on to take nearby Granada on behalf of its rival city, León.
Once construction of North America's first transcontinental railway was completed in 1869, and the Americans could travel overland to gold country, San Juan del Sur went back to being a quiet shipping village. The town's church, Iglesia San Juan Bautista, was built in the late 1800s. It has since been restored, using original materials.
San Juan del Sur continued life as a quiet fishing village for much of the 20th century, with the great majority of its inhabitants earning their living from the sea. It began to develop as a more commercial shipping port in the 1940s, from where cattle, wood and other local products were exported.
Like so much of Nicaragua, San Juan del Sur didn't escape the Contra War unscathed. On March 7, 1984, the Contras attacked the town's oil and storage facility. Some years later, the International Court of Justice found the United States guilty of using force against 'the Republic of Nicaragua, in breach of its obligation under customary international law not to use force against another State,' for this and other attacks on the country during 1983 and 1984.
San Juan del Sur's popularity as a tourist destination has risen in the last decade. It's been one hell of a rise, and the town is now Nicaragua's main beach resort. Tourism has replaced fishing as its primary source of income, and foreign investment has poured into the area. Despite the visiting throngs, however, and hotels sprouting up along this stretch of coast, San Juan del Sur maintains its original mellow vibe. The nightlife's fun, too, without being too OTT or glitzy.
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