Members of the Tongva, Juaneño, and Luiseño Native American groups long inhabited the area [of Orange County]. After the 1769 expedition of Gaspar de Portolà, a Spanish expedition led by Junipero Serra named the area Valle de Santa Ana (Valley of Saint Anne). On November 1, 1776, Mission San Juan Capistrano became the area's first permanent European settlement. Among those who came with Portolá were José Manuel Nieto and José Antonio Yorba. Both these men were given land grants—Rancho Los Nietos and Rancho Santiago de Santa Ana, respectively. The Nieto heirs were granted land in 1834. The Nieto ranches were known as Rancho Los Alamitos, Rancho Las Bolsas, and Rancho Los Coyotes. Yorba heirs Bernardo Yorba and Teodosio Yorba were also granted Rancho Cañón de Santa Ana (Santa Ana Canyon Ranch) and Rancho Lomas de Santiago, respectively. Other ranchos in Orange County were granted by the Mexican government during the Mexican period in Alta California.
A severe drought in the 1860s devastated the prevailing industry, cattle ranching, and much land came into the possession of Richard O'Neill, Sr., James Irvine and other land barons. In 1887, silver was discovered in the Santa Ana Mountains, attracting settlers via the Santa Fe and Southern Pacific Railroads.
This growth led the California legislature to divide Los Angeles County and create Orange County as a separate political entity on March 11, 1889. The county is generally said to have been named for the citrus fruit (once its most famous product). However, in the new county there was already a town by the name of Orange, named for Orange County, Virginia, which itself took its name from William of Orange. The fact the county took the same name as one of its towns may have been coincidence.
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