It is known to be located only in Santa Cruz County, California within the Zayante sandhills, an area with little vegetation, primarily made up of sand and soil sediments.

[4] A shallow sea once covered California's Central Valley and when the Santa Cruz Mountains formed, sand from the ocean floor was uplifted and created the sandhills ecosystem.

The Zayante sandhills ecosystem is not only home to the endangered Zayante band-winged grasshopper, but also to other unique species, many of which are on the endangered species list, including the Mount Hermon June beetle, Santa Cruz wallflower, Ben Lomond buckwheat, Bonny Doon Silver Leaf manzanita, Ben Lomond spineflower, and the Santa Cruz kangaroo rat.

Fish and Wildlife Service has designated critical habitats within the communities of Mount Hermon, Felton, Ben Lomond, Zayante, and Scotts Valley (10,560 acres or 4,270 hectares).

As of 2008, Santa Cruz County, the City of Scotts Valley, the United States Fish and Wildlife Service (USFWS), and various organizations and individuals are continuing efforts to preserve sandhill habitat.