Santa Margarita

HOP SKIP & A JUMP TO DOWNTOWN SLO

In 1841 after Mexico’s 1822 independence and 1830s mission secularization, Joaquin Estrada became the owner of the Rancho Santa Margarita. Estrada was famed for his “Rancho Hospitality” with rodeos, BBQs and fiestas. After downturns in the economy and personal debts, Estrada sold the Rancho to the Martin Murphy family in 1860.

Patrick Murphy worked to restore the Rancho to a working agricultural ranch. On April 20, 1889 the Southern Pacific Railroad reached Santa Margarita from Templeton. A “Grand Auction” was held to sell lots for the new town of Santa Margarita along the El Camino Real. While construction down the Cuesta Grade took place, the railroad terminus was in Santa Margarita. This created a boom time in the community. All freight had to be loaded for stage transportation up and down the Cuesta Grade. Town boasted a hotel, restaurants, taverns, blacksmiths, and ice cream parlors. Once the “gap” was closed from Santa Margarita to San Luis Obispo in 1894 the town grew quiet.

Margarita Town saw a renaissance in the roaring 1920s. The El Camino Real was one of the primary roads for seeing California. The town offered a motor inn, hotel, 6 gas stations, garages, pool halls, restaurants, fraternal organizations, taverns and a baseball team. The Depression hit town and the surrounding areas hard. The War Department took land from local farmers to build a reservoir on the Salinas River which created Santa Margarita Lake to provide water for Camp San Luis. The war ended before the work was completed and Santa Margarita Lake is now a County Recreation Area. After Hwy 101 bypassed Santa Margarita in 1956, the town was quiet once again.

If you are looking for a short commute to SLO for a lot less money, check out Santa Margarita!