Kaspiysk is one of the youngest cities in Dagestan, founded in 1931 during Soviet industrialization to house workers for a new weapons factory. The city grew rapidly as workers from across the Soviet Union arrived. By 1940, the factory had become one of the largest enterprises in the Northern Caucasus, employing over 5,000 workers who produced aviation bombs, shells, mines and other weapons during World War II. After the war, the city and factory continued expanding, and Kaspiysk is now a modern, well-built satellite city of Makhachkala with ample greenery, schools and houses.