The earliest human inhabitants of the local area were the Chumash people.One of the earliest villages lies south of San Luis Obispo and reflects the landscape of the early Holocene when estuaries came farther inland.The Chumash people used marine resources of the inlets and bays along the Central Coast and inhabited a network of villages, including sites at Los Osos and Morro Creek.

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Mission San Diego was the first Spanish mission founded in Alta California that same year.

On September 7–8, 1769, an expedition led by Gaspar de Portolá entered the San Luis Obispo area from coastal areas around today's Pismo Beach.

One of the expedition's three diarists, padre Juan Crespí, recorded the name given to this area by the soldiers as Cañada de Los Osos ("cañada" translates as "valley" or "canyon").

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