In 1833, Lieutenant Vallejo was requested by Governor Figueroa to analyze the state north of Mission San Rafael, and to go to Fort Ross and Bodega Bay. On his way to Fort Ross, Vallejo crossed the fertile valley of Petaluma. Later, he developed a little dwelling and a corral, and in the spring he was completely ready to petition for a grant of land in which he could location his livestock. The land grant was approved by Governor Figueroa in June 1834. Governor Figueroa gave Vallejo vastly elevated powers his title was Armed forces Commander and Director of Colonization of the Northern Frontier, and he was particularly asked for to take cost of the mission at Sonoma, reduce it to the position of a parish church, absolutely free the Indian personnel, and distribute the mission lands and other belongings amongst the population at significant. The ten square league (around forty four,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. Whilst Vallejo's rancho was centered on Petaluma, he made his house in Sonoma.

With the cession of California to the United States following the Mexican–American War, the 1848 Treaty of Guadalupe Hidalgo furnished that the land grants would be honored. As necessary by the Land Act of 1851, a assert for Rancho Petaluma was filed with the Community Land Fee in 1852,[4][5] and the grant was patented to Mariano G.
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Vallejo in 1874.[six][7] James H. Watmough, purser on the USS Portsmouth, acquired land from Vallejo in 1847. In 1853 Watmough was an unsuccessful claimant for a just one sq. mile (640 acres (3 km2)) aspect of Rancho Petaluma.[eight]

As settlers designed their way into Sonoma County in the mid-1850s, Vallejo subdivided and offered most of the rancho. In 1864, Vallejo bought the very last remaining one,450 acres (six km2) of the primary Rancho Petaluma to San Francisco banker Alfred Borel.