Arana Gulch is named after José Arana, who came to Alta California in 1834 with the Hijar-Padres colonization group. Arana was the grantee of the Rancho Potrero y Rincón de San Pedro Regalado (now the Potrero and Harvey West neighborhoods of northern Santa Cruz) in the year 1842. Sometime after that date, Arana moved to the area that now bears his name. Prior to California statehood, Arana Creek was the dividing line between lands assigned to the Villa de Branciforte (to the west) and those of Rancho Arroyo del Rodeo.