The valley is part of the Santa Ysabel Creek watershed, which drains into the San Dieguito River.

On December 6 and December 7, 1846, the Californios, led by General Don Andrés Pico, fought Stephen W. Kearny's column of 140 U.S. Army troops as they descended from the Santa Maria Valley into the valley near San Pasqual on their way from Warner's Ranch to San Diego.

[7] Rancho Guejito (pronounced wa-hee-to)[8] is a 13,299-acre (54 km2) Mexican land grant in Southern California, approximately seven miles east of Escondido.

The San Pasqual and Clevenger Canyon Open Space Park is located at the valley's eastern end.

[12] The residential area located in the mountains that border the valley, near the agricultural preserve, is officially named Rancho San Pasqual.

San Pasqual Valley was the fourth wine region to be designated an American Viticultural Area when the AVA was created in 1981.

The AVA is encroached on by the cities of San Diego, Poway, and Escondido, resulting in relatively high land values but limited viticultural potential.

The oceanic influence provides a Mediterranean-like climate with cool, foggy mornings and warm, sunny afternoons, which is very beneficial for growing a wide range of wine grape varieties.

These wineries produce wines from grape varieties that thrive in this climate, including Cabernet Sauvignon, Syrah, Merlot, and Sangiovese.