When Sergio Leone was filming “For a Few Dollars More” in 1965 he visited the Spanish village of Los Albaricoques. He had used it the year before in the opening scenes of “Fistful of Dollars”. The village was looking very sad and sorrowful. It seems the villagers were remembering a fellow villager that had died that week and the women were still in a state of mourning, wearing all black dresses and shawls. This fit perfectly into his plans to use the village as the site of Agua Caliente. It’s here outside of town where the bandit Indio tells his new henchman Manco "Here we are, that's Agua Caliente, it looks like a morgue and look out it could be one so easily, they don't like strangers eh?". He tells Manco to go on in and show the gang how he can shoot.
So what you see is a real town, a Spanish village and the women in black are actual residents of the village.