[1] Construction was led by W. H. Matthiessen, a rancher who owned what is today Hidden Valley,[4] Lake Sherwood, and Thousand Oaks.

Originally called the Alturas Dam, it was built to contain the water from four main streams draining into a sixteen-mile catchment basin.

Potrero Lake was formed that winter, its sudden existence attracting photographers and filmmakers alike to the newly created shores.

The reservoir also directly inspired civil engineers such as William Mulholland, who began designing the Los Angeles Aqueduct in 1905.

"[6] However, construction of the private community was halted by the stock market crash of 1929, and Elsie Canterbury was forced to sell the land west of the lake to William Randolph Hearst.