0Carmel-by-the-Sea is called a village in the forest by the sea--a one-square-mile California town with quaint charm and European-inspired architecture. Since this beautiful coastal town was established in 1902, residents have resisted change and battled to keep it unique and distinctive. Today, Carmel is defined by many of its historic buildings from the 1920s and 1930s, which contribute to the area's sense of place.