It was established as a shipping station on the Florida Railroad that ran from Fernandina through Gainesville to Cedar Key, largely absorbing an earlier community called Kanapaha.
[2] The area around Arredondo was used to raise cattle in the middle of the 19th century, and some cattle-raising continued into the 1880s.
In the 1850s, cotton growers from South Carolina established plantations, including the Haile Homestead, in the area, which was then called Kanapaha.
After the Civil War, the cotton planters and newcomers to the area turned to vegetable, fruit and tree-nut production.
In 1872, 20 acres (8.1 ha) were planted to tomatoes, and Arredondo became the center of tomato-growing in Florida.