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The area's rich soil attracted farmers to the region in the latter part of the 19th century. The Santa Maria River Valley was one of the most productive agricultural regions in the state by the end of this century. The city's economy and that of the whole region are still heavily dependent on agriculture.
Rudolph Cook (John Thornburg), Isaac Fesler, and Isaac Miller were the settlers of the valley between 1869-1874. They built their homes at the corners of Broadway and Main Street. Santa Barbara recorded the townsite in 1875. Grangeville was the new name of the town, which was then changed to Central City. Santa Maria was given the name Santa Maria on February 18, 1885. This was because mail was frequently being sent to Central City, Colorado, by mistake. Santa Maria was named after Juan Pacifico Ontiveros, who had 25 years ago given his property the name Juan Pacifico Ontiveros. Streets named after these four settlers form a 6-block square that is centered on Broadway and Main Street in the middle of town.
The first oil exploration was conducted in 1888. Large-scale discoveries were made at the beginning of the 20th century. Union Oil, which discovered the Orcutt Oil Field south of the town in the Solomon Hills, made the first oil production. A number of smaller companies began to pump oil as well. Union Oil was producing 22 wells two years later. The Lompoc Oil Field was discovered in 1903, and the Cat Canyon Field in 1908. Over the next 80 years, more large oil fields were discovered and thousands of wells were drilled and put into production. Oil development accelerated in the 1930s with the discovery 1934 of the Santa Maria Valley Oil Field. This oil field was located under the city of Santa Maria's western and southern parts. This discovery spurred further growth. In 1957, there were 1,775 operating oil wells in Santa Maria Valley that produced more than $640 million in oil.
