Stucco isn't strong enough to stand up to the structural tensions put on a fence. To make a stucco fence that will last through pressure, impact and weather, it needs to have a sturdy frame on the inside that is then covered over with stucco. You could simply stack cinderblocks to make the frame of a stucco fence, but a wood-frame fence is more versatile.
Dig a 2-foot-deep hole every 8 feet along the line of the fence.
Sink a 6-inch-by-6-inch post into each hole and backfill the hole. The posts should be as long as you want the fence to be tall, plus 2 feet. So if you want the fence to be 4 feet tall, each post should be 6 feet long.
Nail sheets of plywood along the length of the fence on both sides of the posts.
Drape stucco wire, mesh sheets that will help to hold the stucco in place, across both sides of the fence between the posts.
Mix one part hydrated lime, three parts fine masonry sand and two parts Portland cement in a wheelbarrow or large tub. Add water, mixing as you go, until the mixture is pastelike and forms readily when squeezed into shape with your hands.
Apply a thick layer of the stucco mixture along the fence, on the top and sides, with a trowel.
Let the first coat of stucco dry for about three hours, then apply a second coat.