The state's 15th appellation was established on May 16,1983 by the Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury after reviewing the petition submitted by the Arroyo Seco Winegrowers and Vintners, an association composed of grape growers and vintners with vineyards, to establish a viticultural area within Monterey County known as "Arroyo Seco.

The boundary modification transferred 148 acres (60 ha) of foothills terrain from the west side of the Arroyo Seco to the southeastern area of the Santa Lucia Highlands.

The name arroyo seco meaning "dry stream" in Spanish has been used continually through the years in conjuction with the river and rancho however, its link to a viticultural area is relatively recent as stated in the petition.

Since 1963, many vineyards were established in the region and Arroyo Seco has been referenced in numerous magazines, newspapers and wine publications describing vintages sourced here.

[1] The soils in the Arroyo Seco area consist of a series of gravelly and fine sandy loams well suited to the cultivation of grapes.

The proposed viticultural area consists of an alluvial fan formed by well drained soils with slopes ranging from 0 to 9 percent.

The prominent soils, Chular and Arroyo Seco, are coarse sandy loams derived from decomposed granite washed down from the Gabilan Mountains.

These soils are gravelly and low in lime content similar to the vinyards in the Medoc and Graves districts of Bordeaux, and to the better vineyards in the Palatinate.

The boundaries of the proposed Arroyo Seco viticultural area are based on a combination of climate, physical features, soils and irrigation sources.

[1] Arroyo Seco AVA has celebrated four decades of viticulture and innovative wine-making showcasing varietals such as its Chardonnay, Riesling and Pinot Noir with newer vintages like the Musqué clone of Sauvignon Blanc.