It is named after the first Mexican land grant in San Diego County, Rancho Santa Maria de Los Peñasquitos.

Rancho Peñasquitos is roughly bounded: The highest point in the community is Black Mountain, which rises to an elevation of 1,500 feet (460 m).

In 1823, one league (4,243 acres; 17 km2) was awarded to Captain Francisco María Ruiz, a Commandant of the Presidio of San Diego.

[7] The ranch operated until 1962, when real estate developer Irvin Kahn acquired the 14,000- acre parcel with the intent of building a 150,000-resident planned community.

Interstate 15 forms an eastern boundary of Rancho Peñasquitos, with Carmel Mountain Ranch lying on the far side.

The San Diego Metropolitan Transit System (MTS) operates a bus through the area, #20, with a stop on Carmel Mountain Road.

The MTS Rapid #235 bus operates from the Sabre Springs/Peñasquitos Transit Station, arriving in downtown San Diego after only 5 stops.