The Guadalupe-Nipomo Dunes is owned by a number of federal, state, and local agencies, and private companies, organizations and individuals.

[4] The first known inhabitants of the Guadalupe-Nipomo Dunes were Native Americans of the Chumash tribe; early Spanish maritime explorers noted their settlements.

The Chumash had poisoned the skinny bear - as a means of protection, they often incapacitated dangerous wildlife by feeding them tainted meat.

[17] The Guadalupe-Nipomo Dunes were formed by a combination of factors including beach sand which was blown inland by the wind and the Santa Maria River which brought sediment to the coast.

[19] Even though the Guadalupe-Nipomo Dunes consist of moving sand with extremely low moisture that is seemingly deprived of nutrients, it is home to a variety of flora and fauna.

The fore dunes begin at the high tide line, where only low growing plants with deep root systems (such as sand verbena) can live.

The strong winds, salt spray, and massive amounts of sand make this area uninhabitable for other types of plants.

Plants that live there are adapted to dynamic environmental conditions including high salinity concentration and extreme temperatures.

Other animals also depend on the dunes such as the California red-legged frog, western terrestrial garter snake, mule deer, black bear, bobcats, and mountain lions.

[23] Off-road vehicle use partially conflicts with habitat of the western snowy plover (Charadrius nivosus) which was listed as threatened under the Endangered Species Act (ESA) on March 5, 1993.

[28] Scientist Tom Jordan studied data on bird nesting sites and found that snowy plovers "prefer the beach and the flatter areas," such as on top of the dunes, where they can watch for predators.

[30] The Santa Lucia Chapter of the Sierra Club proposed year-round fencing to protect plover habitat, but the Oceano Dunes State Vehicular Recreation Area rejected the idea.

The Sierra Club sued the State Parks for violating the ESA by not providing enough protection for the snowy plover, as well as the California least tern and steelhead trout.

In the case settlement, the State Park was given the responsibility of researching, fund raising, and establishing an education program about the snowy plover.

Additionally, they must find alternate routes to avoid vehicles crossing the Arroyo Grande Creek because it is inhabited by the steelhead trout.

Some rules are: adhere to the 15 mph (24 km/h) speed limit, do not enter closed areas, keep dogs on a leash at all times, and rid the beach of trash that could attract predators.

For 25 years, the County of San Luis Obispo has leased 584 acres (2.36 km2) of the Dunes to the State Department of Parks and Recreation, free of charge.

To sell real property, four-fifths of the supervisors must vote in favor; but in order to renew a lease only a majority is required.

On Tuesday April 17, 2007, the San Luis Obispo Board of Supervisors voted 4–0 not to sell the 584 acres (2.36 km2) of land to the State.