The vicinity of Santa Paula was originally inhabited by the Chumash, a Native American people. Father Junipero Serra became active in the area during the Spanish mission period; the town takes its name from the Catholic Saint Paula. Santa Paula is located on the 1843 Rancho Santa Paula y Saticoy Mexican land grant.
In 1872 Nathan Weston Blanchard purchased 2,700 acres (10.9 km2) and founded the town of Santa Paula. Several small oil companies owned by Wallace Hardison, Lyman Stewart and Thomas R. Bard combined to become the Union Oil Company in 1890.
In April 1911, Gaston Méliès moved his Star Film Company from San Antonio, Texas to a site just north of Santa Paula.