The Mission San Juan Capistrano was founded more than two hundred years ago as the 7th of a string of 21 missions across the state, and includes a chapel still standing where its founder, Fr. Serra, once celebrated Mass. Today it is a monument to California's multi-cultural history, embracing its Native American, Spanish, Mexican and European heritage. The Mission was originally built as a self sufficient community by the Padres and Indians, with the Mission as a center for agriculture, industry, education and religion.

Under the Timber-Culture Acts of the 1870s, those who agreed to plant 10 acres of trees in the area over 10 years and live there while they grew was granted 160 acres. The cove-filled coastline attracted a handful of homesteaders, But the land was too steep and rocky for agriculture or ranching. Instead, Laguna Beach gained a reputation as a beachfront resort. Even in the days of horse trails and stage coaches, citizens from such new towns as Santa Ana and El Toro would make the daylong trek to the quaint seashore village. They'd set up tents and stay the weekend, or some would build summer homes.

Just after the turn of the 20th century, Norman St. Clair, an artist from San Francisco arrived in Laguna Beach and started painting. When he returned to San Francisco, he began convincing his artist friends to move to Laguna Beach, over 30 artists within ten years. In 1918, formed the Laguna Beach Art Club. This Club hosts the famous Laguna Beach Festival of Arts that continues to attract art fans to this day.