1850 - 1940 A Brief History of Morro Bay
The 1850s
The Beginning of California Statehood
Morro Bay, California, nestled along the central coast beneath the iconic volcanic peak of Morro Rock, experienced a remarkable transformation during the period from 1850 to 1940. What began as sparsely populated Mexican rancho land evolved into a thriving American coastal community, shaped by the Gold Rush, railroad development, agricultural expansion, and the emergence of maritime industries.When California gained statehood in 1850, the Morro Bay area remained largely undeveloped, operating under the Mexican rancho system established in the 1830s.
The region had been part of various Mexican land grants, with the secularization of Mission lands in 1834 having distributed former Mission San Luis Obispo territories to private ranchers. The area around Morro Bay was characterized by vast cattle ranches that supplied hides and tallow to trading vessels, continuing patterns established during the final years of Mexican rule.
The transition to American governance brought significant changes to land ownership and development patterns. The California Land Commission, established in 1851, required all Mexican-era land grants to be validated under American law, creating uncertainty for existing landowners and opening opportunities for American settlers to acquire property through various legal mechanisms.
The 1870s
The Founding of Morro Bay: Franklin Riley
The most pivotal moment in Morro Bay's development came in 1870 when Franklin Riley, a former Gold Rush participant turned entrepreneur, recognized the commercial potential of the natural harbor formed by Morro Bay and its protective rock formation.
Riley founded the town of Morro Bay as a port for the export of dairy and ranch products, proving instrumental in the building of a wharf that would become the foundation of the modern Embarcadero.
Riley's vision transformed Morro Bay from a remote ranching outpost into a functioning commercial port. During the 1870s, schooners could often be seen at the Embarcadero, picking up wool, potatoes, barley, and dairy products from the surrounding agricultural areas.
This maritime commerce connected Morro Bay to larger markets, particularly San Francisco, establishing trade relationships that would sustain the community's growth for decades.
The establishment of the wharf represented more than just infrastructure development; it marked Morro Bay's integration into California's broader commercial network.
The 1870s - 1940s
Morro Bay: The Abalone Capital of the World
Morro Bay's abalone industry developed gradually from a small fishing operation into a major commercial enterprise. While the first commercial abalone fishery was established in the 1850s by Asian American families in the Monterey area, Morro Bay's own industry began taking shape in the early 1900s after the town was founded in 1870.
The abalone divers of Morro Bay landed millions of pounds of abalone from 1916 through the early 1960s, mostly red abalone. The industry expanded significantly in the late 1920s when the Pierce family of Salinan Indians from the Toro Creek Indian Settlement started abalone diving in Morro Bay.
By the 1930s, a community of professional hard-hat divers had established themselves, harvesting abalone from the rocky reefs along the central California coast.
This period from the late 1800s to 1940 laid the groundwork for Morro Bay's post-war boom, when it would become known as the "Abalone Capital of the World." Over 110 million pounds of abalone were eventually landed in Morro Bay from the early 1900s to 1962, with the foundations of this massive industry firmly established by 1940.
“To County Supervisors: Glad to hear you’re trying to acquire the U.S. naval amphibious training base as a county recreational area. It’s a natural for the purpose you have in mind - and it would be a shame to miss the chance to utilize it.”
“County Seeks Morro Base As Play Area”
December 6, 1947: Editorial
The San Luis Obispo Telegram-Tribune
“The Morro Bay navy base… has become a valuable addition to the county’s park system; and extensive future development is under consideration to make it an outstanding recreational area (Sup. Merrick) has announced.”
“Morro Navy Base Open to Public As County Park”
January 13, 1948: Front Page
The San Luis Obispo Telegram-Tribune
“Transfer of the Morro Bay navy base to San Luis Obispo county has opened up one of the finest park and recreation areas on the Pacific coast between San Francisco and Santa Barbara, a survey of possible future developments indicated today.”
“Morro Bay Harbor Worth Millions as Recreation Area”
January 17, 1948: Front Page
The San Luis Obispo Telegram-Tribune
The 1880s - 1900s
Agricultural Development and Transportation
The late nineteenth century witnessed significant agricultural expansion throughout California, driven by population growth, improved transportation networks, and favorable climate conditions.
Morro Bay benefited from these broader trends, serving as a shipping point for an increasingly diverse array of agricultural products from San Luis Obispo County's fertile valleys.
The completion of the transcontinental railroad in 1869 had transformed California's economy, though Morro Bay remained dependent on maritime transportation due to its coastal location.
The development of railroad networks throughout the Central Coast region, including the Pacific Coast Railway's narrow-gauge lines connecting San Luis Obispo to various coastal points, improved the efficiency of moving goods to and from Morro Bay's port facilities.
During this period, the surrounding region developed specialized agricultural production, including dairy farming, wool production, and grain cultivation. Potato farming became particularly important, with Morro Bay serving as a major export point for this crop.
The 1890s - 1910s
Population and Community Growth
As economic opportunities expanded, Morro Bay experienced steady population growth that necessitated the development of community institutions and infrastructure.
The town attracted a diverse population including former Gold Rush participants, agricultural workers, maritime laborers, and business entrepreneurs seeking opportunities in California's expanding economy.
The establishment of schools, churches, and commercial buildings reflected the community's increasing stability and prosperity.
Local businesses developed to serve both residents and the broader agricultural region, including general stores, hotels, and services catering to visiting sailors and merchants. The town's strategic location made it a natural gathering point for the scattered ranching and farming population of the broader area.
The dramatic landscape, featuring Morro Rock and the surrounding coastline, appealed to tourists and seasonal residents, laying the groundwork for what would later become a significant tourism industry.
The 1900s - 1920s
Challenges and Opportunities
The early decades of the twentieth century brought both challenges and opportunities to Morro Bay. Technological changes in transportation and communication connected the community more closely to regional and national networks while also creating new competitive pressures.
The development of improved road networks and the eventual decline of coastal shipping for many goods required economic adaptation.
During this period, fishing began to emerge as an important economic activity. The bay's protected waters and abundant marine life made it an ideal location for commercial fishing operations.
Local fishermen targeted various species, developing techniques and markets that would become increasingly important to the community's economic base.
Improved agricultural techniques, better transportation networks, and growing urban markets created opportunities for continued development, even as the specific character of that development evolved with changing conditions.
“To County Supervisors: Glad to hear you’re trying to acquire the U.S. naval amphibious training base as a county recreational area. It’s a natural for the purpose you have in mind - and it would be a shame to miss the chance to utilize it.”
“County Seeks Morro Base As Play Area”
December 6, 1947: Editorial
The San Luis Obispo Telegram-Tribune
“The Morro Bay navy base… has become a valuable addition to the county’s park system; and extensive future development is under consideration to make it an outstanding recreational area (Sup. Merrick) has announced.”
“Morro Navy Base Open to Public As County Park”
January 13, 1948: Front Page
The San Luis Obispo Telegram-Tribune
“Transfer of the Morro Bay navy base to San Luis Obispo county has opened up one of the finest park and recreation areas on the Pacific coast between San Francisco and Santa Barbara, a survey of possible future developments indicated today.”
“Morro Bay Harbor Worth Millions as Recreation Area”
January 17, 1948: Front Page
The San Luis Obispo Telegram-Tribune
The 1920s - 1940s
Economic Diversification
While agriculture and maritime activities remained important, the town began developing a more diversified economic base that would characterize its future development.
Tourism became an increasingly significant economic factor during the 1920s and 1930s. California's growing automobile culture made Morro Bay more accessible to visitors from inland areas and major cities.
The fishing industry also expanded during this period, with local fishermen developing more sophisticated techniques and accessing broader markets. The abundant marine life in Morro Bay and the surrounding coastal waters supported various types of commercial fishing, contributing to both local employment and the community's reputation as a fishing destination.
By the 1940s, Morro Bay initiated an abalone fishing industry, which would expand to incorporate more fish over the following decades, reflecting the community's adaptation to available natural resources and market opportunities.
The 1920s - 1940s
Infrastructure Development and Modernization
The interwar period also saw significant infrastructure improvements that enhanced Morro Bay's connectivity and quality of life.
Road improvements connected the community more effectively to San Luis Obispo and other regional centers, facilitating both commerce and tourism. The development of better communications infrastructure, including telephone service, integrated Morro Bay into broader information networks.
Modernization efforts also included improvements to port facilities, reflecting both the continued importance of maritime commerce and the community's adaptation to changing transportation technologies.
While the relative importance of shipping declined compared to earlier decades, the harbor remained a significant economic asset and community focal point.
Public utilities development, including improved water and electrical systems, supported both residential growth and commercial expansion. These infrastructure investments reflected the community's confidence in its future prospects and its commitment to attracting continued development.
The 1930 - 1940
WW2 Preparation and Community Change
As the 1930s progressed and international tensions increased, Morro Bay, like many California coastal communities, began experiencing changes that would accelerate during World War II.
The strategic importance of California's coast became increasingly apparent, and communities like Morro Bay found themselves positioned to play important roles in national defense preparations.
The late 1930s saw increased federal interest in coastal defense and the potential military use of harbors and coastal facilities.
While major military development in Morro Bay would occur primarily after 1940, the groundwork for these changes was laid during the final years of the period covered by this essay.
Economic conditions during the Great Depression had mixed effects on Morro Bay. While some sectors experienced difficulties, the community's diverse economic base and continued agricultural productivity provided some insulation from the worst effects of national economic hardship.
The town's small size and tight-knit community structure also facilitated mutual support during difficult times.
“To County Supervisors: Glad to hear you’re trying to acquire the U.S. naval amphibious training base as a county recreational area. It’s a natural for the purpose you have in mind - and it would be a shame to miss the chance to utilize it.”
“County Seeks Morro Base As Play Area”
December 6, 1947: Editorial
The San Luis Obispo Telegram-Tribune
“The Morro Bay navy base… has become a valuable addition to the county’s park system; and extensive future development is under consideration to make it an outstanding recreational area (Sup. Merrick) has announced.”
“Morro Navy Base Open to Public As County Park”
January 13, 1948: Front Page
The San Luis Obispo Telegram-Tribune
“Transfer of the Morro Bay navy base to San Luis Obispo county has opened up one of the finest park and recreation areas on the Pacific coast between San Francisco and Santa Barbara, a survey of possible future developments indicated today.”
“Morro Bay Harbor Worth Millions as Recreation Area”
January 17, 1948: Front Page
The San Luis Obispo Telegram-Tribune
Sources and Citations
Historical Society of Morro Bay. "A Timeline." Accessed September 2, 2025. https://historicalmorrobay.org/a-timeline/
Morro Bay National Estuary Program. "Exploring Morro Bay History." January 29, 2018. https://www.mbnep.org/2016/09/30/exploring-morro-bay-history/
Morro Bluff Inn. "Local History." Accessed September 2, 2025. https://www.morrobluffinn.com/morro-bay-history
Olson, C. "Historical Timeline – Morro Bay." May 14, 2015. https://olsoncsumb.wordpress.com/historical-timeline/
Visit Morro Bay. "About Morro Bay." Accessed September 2, 2025. https://www.morrobay.org/plan/about-morro-bay/
Visit Morro Bay. "Dive Into the History of Morro Bay." November 14, 2024. https://www.morrobay.org/blog/post/dive-into-the-salty-storied-history-of-morro-bay/
Wikipedia. "Morro Bay, California." Last modified September 2025. https://en.wikipedia.org/wiki/Morro_Bay,_California
Wikipedia. "Pacific Coast Railway." Last modified June 27, 2025. https://en.wikipedia.org/wiki/Pacific_Coast_Railway
WorldAtlas. "Morro Bay, California." June 15, 2022. https://www.worldatlas.com/cities/morro-bay-california.html
Calisphere. "1866-1920: Rapid Population Growth, Large-Scale Agriculture, and Integration into the United States." University of California. https://calisphere.org/exhibitions/essay/5/population-growth/
Humanities LibreTexts. "The Economic Transformation of California and the West." August 26, 2022. https://human.libretexts.org/Bookshelves/History/State_and_Local_History/Competing_Visions:A_History_of_California(Cherny_Lemke-Santiangelo_and_Castillo)/06:_California_in_the_Gilded_Age_18701900/6.01:_The_Economic_Transformation_of_California_and_the_West
Monterey County Historical Society. "Railroads of the Central Coast–An Overview." https://mchsmuseum.com/local-history/american-era-settlement/railroads-of-the-central-coast-an-overview/
Picture This: California Perspectives on American History. "Early Statehood: 1850 – 1880s: Railroads Tie California to the Rest of the Nation." Oakland Museum of California. http://picturethis.museumca.org/timeline/early-statehood-1850-1880s/railroads-tie-california-rest-nation/info