The city is one of the newer urban centers in Dagestan. It began in 1932 as a worker's encampment, servicing the needs of the nearby naval diesel engine manufacturer, Dagdizel. At the time, it was called Dvigatelstroy (Дви́гательстро́й), based upon the Russian word for "engine". During World War II, the site saw much growth due to the war effort, and became a center for major arms producers. In 1947, the settlement received the status of a city, and was given its current name, reflecting its location on the shores of the Caspian Sea.
Chechen Wars
On November 16, 1996, 68 people were killed in a Chechen bomb attack targeting an apartment.
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Russian Orthodox
The city belongs to the Diocese of Makhachkala. Kaspiysk parish was formed in 1990 with the blessings of the Metropolitan of Stavropol and Baku, and was officially registered in 1994. In 2000, the community consecrated St. Kazan Church.
Seventh Day Adventists
In 2010, the Seventh Day Adventists dedicated a house of worship in the city. It became the target of two explosives attacks within two months.
Economy
The city is home to:
Dagdizel machine-building factory, founded in 1932. It produces diesel engines, electric motors, torpedoes, and other products for the Russian Navy.
JSC Caspian Sea precision mechanics - machine-building factory, founded in 1960. It manufactures maritime navigation equipment for military and commercial use.
Народное Собрание Республики Дагестан.Закон№16от10 апреля 2002 г. «Об административно-территориальном устройстве Республики Дагестан», в ред. Закона №106 от30 декабря 2013 г.«О внесении изменений в некоторые законодательные акты Республики Дагестан». Вступил в силусо дня официального опубликования. Опубликован: "Дагестанская правда", №81, 12 апреля 2002 г. (People's Assembly of the Republic of Dagestan.Law#16ofApril10, 2002 On the Administrative-Territorial Structure of the Republic of Dagestan, as amended by the Law#106 ofDecember30, 2013 On Amending Various Legislative Acts of the Republic of Dagestan. Effective as ofthe day of the official publication.).
Народное Собрание Республики Дагестан.Закон№6от13 января 2005 г. «О статусе и границах муниципальных образований Республики Дагестан», в ред. Закона №43 от30 апреля 2015 г.«О статусе городского округа с внутригородским делением "Город Махачкала", статусе и границах внутригородских районов в составе городского округа с внутригородским делением "Город Махачкала" и о внесении изменений в отдельные законодательные акты Республики Дагестан». Вступил в силусо дня официального опубликования. Опубликован: "Дагестанская правда", №8, 15 февраля 2005 г. (People's Assembly of the Republic of Dagestan.Law#6ofJanuary13, 2005 On the Status and Borders of the Municipal Formations of the Republic of Dagestan, as amended by the Law#43 ofApril30, 2015 On the Status of the "City of Makhachkala" Urban Okrug with Intra-Urban Divisions, the Status and the Borders of the Intra-City Districts Comprising the "City of Makhachkala" Urban Okrug with Intra-Urban Divisions, and on Amending Various Legislative Acts of the Republic of Dagestan. Effective as ofthe day of the official publication.).