It was established on October 5, 1987 by the Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury after evaluating the petition submitted by Almadén Vineyards, a winery and grape grower in the area, proposing that a portion of San Benito County be established as a viticultural area to be known as "San Benito.

"[1][3] The viticultural area is located along and near the San Benito River, approximately two miles (3.2 km) south of Hollister.

San Benito has a moderate climate with cooling maritime breezes from the Pacific Ocean flowing through the gaps and valleys between the Gabilan Range and the Santa Lucia Mountains.

[1][3] The history of viticulture in the area was described by John P. Ohrwall in a talk given to the San Benito County Historical Society on July 29, 1965.

In that talk, Mr. Ohrwall related that the first vineyard in San Benito County was planted near the new viticultural area by Theophile Vache in the early 1850's.

Unfortunately, the original vineyard planted by Theophile Vache is no longer in production, because the soil in that vicinity has become permeated with boron salts.