It was named after the Chumash word for "clams", most likely due to the millions of petrified prehistoric clamshell fossils that are found in the surrounding areas.

New Cuyama is located very close to the intersection points for Santa Barbara, San Luis Obispo, Ventura and Kern counties.

The imprint of an old Indian trail can still be seen leading over the hills of present-day Ventura County to the headwaters of Piru Creek.

[2] The area's recorded history dates to 1822, when Mexico won independence from Spain and took over the Spanish colony of Alta California.

The original ARCO-built gas processing plant is still in use and easily seen due south of New Cuyama, though ARCO has since sold off interest in the facility.

[5] The town of New Cuyama, at its founding, was considered the pearl of eastern Santa Barbara County, due to the flow of oil that was coming out of the region.

During this time ARCO built the town, funded schools and provided all the important utilities other than electricity.

In 2024, Santa Barbara County approved the construction of a mixed-use development project, including 33 residential units, in New Cuyama.