In 1833, Lieutenant Vallejo was ordered by Governor Figueroa to take a look at the country north of Mission San Rafael, and to visit Fort Ross and Bodega Bay. On his way to Fort Ross, Vallejo crossed the fertile valley of Petaluma. Later on, he built a small home and a corral, and in the spring he was prepared to petition for a grant of land where by he could spot his livestock. The land grant was permitted by Governor Figueroa in June 1834. Governor Figueroa gave Vallejo vastly greater powers his title was Army Commander and Director of Colonization of the Northern Frontier, and he was exclusively requested to choose demand of the mission at Sonoma, decrease it to the position of a parish church, free the Indian staff, and distribute the mission lands and other property amid the inhabitants at substantial. The ten square league (somewhere around 44,000 acres (178 km2)) grant was confirmed by Governor Manuel Micheltorena and elevated by 5 square leagues (about 22,000 acres (89 km2)) in 1843. Even though Vallejo's rancho was centered on Petaluma, he made his dwelling in Sonoma.
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With the cession of California to the United States pursuing the Mexican–American War, the 1848 Treaty of Guadalupe Hidalgo provided that the land grants would be honored. As expected by the Land Act of 1851, a claim for Rancho Petaluma was filed with the Community Land Commission in 1852,[four][5] and the grant was patented to Mariano G. Vallejo in 1874.[6][seven] James H. Watmough, purser on the USS Portsmouth, purchased land from Vallejo in 1847. In 1853 Watmough was an unsuccessful claimant for a one square mile (640 acres (3 km2)) element of Rancho Petaluma.[eight]

As settlers created their way into Sonoma County in the mid-1850s, Vallejo subdivided and marketed most of the rancho. In 1864, Vallejo sold the last remaining 1,450 acres (6 km2) of the first Rancho Petaluma to San Francisco banker Alfred Borel.