Explorers, mainly from Spain, have visited the California coastal areas as part of the voyages up and down the coast that eventually resulted in the establishment of Presidio outposts in San Diego, Monterey and San Francisco (1769 – 1776).
An overland expedition by Gasper de Portola left the San Diego area 14 July 1769 to explore an overland route to Monterey. They reached Cambria/San Simeon on 13 September 1769 (they did not travel inland as far as Paso Robles), and discovered the Salinas River (initially called Rio San Elizario and later Rio de Monterey) on 17 September 1769.
As part of the Spanish colonization activities in California, a string of Missions was established; the San Diego Mission was founded in 1769, the Monterey Mission in 1770.
The place name Arroyo de Santa Ysabel is first encountered in a 1795 report to Governor Diego Borico from Father Buenaventura Sitjar regarding his search for suitable mission lands. Based on the favorable report from Father Sitjar, Father Lasuen established Mission San Miguel Arcangel on 25 July 1797 at the recommended location.
Mission San Miguel acquired extensive land holdings that included Rancho Paso de Robles, Rancho Asuncion, Rancho Huer Huero, Rancho Atascadero, El Nacimiento and Rancho Santa Ysabel.
An early hand drawn map (184_?) shows the Rancho Santa Ysabel land area and identifies the Salinas River, the trail known as El Camino Real (the future route of Highway 101), the San Miguel mission and the settlement of Paso de Robles. Based on the rough scale between the last two points, the current Spanish Lakes position would be on the bottom left side of the map.
Water from the local wells on Rancho Santa Ysabel was channeled to the Mission almost 8 miles to the North. During the Mission period, the Rancho was primarily used for raising sheep, a vineyard has been reported and local Indians raised crops for their own use. In 1814 and 1816, two large adobe buildings were constructed, one, a two story building used as a school for local Indian children (located about 1 mile South of the junction South River and Santa Ysabel Roads in the area of the current Santa Ysabel Ranch Development).
Reference: The Lands of Mission San Miguel, by Wallace V. Ohles
Spanish rule over California ended when Mexico gained independence from Spain in 1825.
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