The original town of San Marcos was about a mile north of Barham, at the intersection of what is now Grand Avenue and Rancho Santa Fe Road. In 1887, the Santa Fe Railroad announced that it was going to lay tracks going through the valley, but to the disappointment of the citizens, the tracks were laid one mile (1.6 km) from the center of the town. By 1896, San Marcos was a community with its own stores, post office, blacksmith, and railroad depot. The first school in the area, which was started in Barham in 1886, had been moved to San Marcos three years later, as Barham was fading due to its distance from the railroad. To prevent San Marcos from suffering a similar fate, in 1903 the people of the town picked up their homes and moved a couple miles east along the railroad tracks to what now are Mission Road and Pico Avenue. By 1905, the town had every convenience, including rural mail delivery and telephone service. Later that same year, the Richland School (now a wedding chapel on Woodland Avenue) was built, becoming the second school in San Marcos. The main business in San Marcos in the 19th and early 20th centuries was farming. In the mid-20th century, dairies and poultry production became a big part of the business in the town.