Immediately south of California Valley is Soda Lake, which is part of the Carrizo Plain National Monument.

[4] California Valley is believed to have been visited by Native Americans passing through to the sacred site at Painted Rock, but no permanent Indian settlement existed due to a lack of easily accessible water.

California Valley was a Spanish land grant, the El Chicote Ranch, that was used for seasonal cattle raising.

After a more northerly route (closer to Highway 41/46) for the State Water Project was selected, many buyers lost heart, many properties were abandoned and the developers went bankrupt.

Between 1960 and 2000, refuse and a number of old cars were dumped in the California Valley area, much of it by local residents, posing serious environmental issues.

California Valley is located on Soda Lake Road about two miles (3 km) south of State Route 58.

The private and restricted California Valley Airport Class II-C 4,200 ft (1,300 m) paved runway extends south from the community center but is not marked on current aeronautical charts and is painted at the south end with a white "X" indicating that it is closed although it can be used with advance permission.

The Bureau of Land Management operates the Carrizo Plain National Monument Guy L. Goodwin Education Center about 12 miles (19 km) south on Soda Lake Road during limited hours for several months of the year.

"The future development of California Valley is anticipated to be limited by water availability"—San Luis Obispo County General Plan.

The Carrizo Plain National Monument, administered by the United States Bureau of Land Management, was established to protect elements of native history and the undeveloped ecology of the southern part of the valley.

Other activities of interest in California Valley include an Indian sweat lodge, hot air ballooning, bird-watching, and astronomy, due to clear skies and no light pollution.

In particular, Highway 58 is a popular route for car and motorcycle touring enthusiasts due to very low traffic and winding roads.

With the recent surge (and equally sudden decline) in oil prices, along with state emphasis on development of renewable energy sources, solar energy firms have studied California Valley and adjacent areas for siting possible solar power generating facilities.

As the area is one of the sunniest in the United States, and competition from other economically self-sustaining land uses has been minimal, several such facilities are already under consideration.

[7] The combined Ausra and OptiSolar projects make Topaz Solar Farm one of the largest photovoltaic power plants in the world.