The earliest inhabitants of the Arroyo Grande Valley were Chumash Indians, who conducted extensive trade with other Native American tribes at a considerable distance.
Arroyo Grande experienced rapid growth in the 1970s and 1980s, partially due to the expansion of the wastewater treatment plant, under an EPA Clean Water Grant, that removed a growth constraint. This federal grant program required preparation of an Environmental Impact Report, which provided much of the initial environmental database for Arroyo Grande.
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