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Before it was permanently settled, the Ramona area was inhabited by Diegueño semi-nomadic people, who established temporary settlements there as they moved between coastal and inland grounds. Their presence is indicated by archeological evidence such as rock paintings, etchings, and grinding stones used to grind acorns into meal for bread. The first post office was called Nuevo. The town took the name Ramona in 1886, when a land speculation syndicate, headed by Milton Santee, "organized the Santa Maria Land & Water Company and acquired 3,200 acres (13 km 2) for a townsite in the Santa Maria Valley and named it Ramona". The next year the town reverted to Nuevo because there was another town, in Los Angeles County, called Ramona.