The area was first known as the Old MacDonald Ranch, but the name changed to Palm Village in the 1920s when date palms were planted. Local historians said the main residents of pre-1950 Palm Desert were Cahuilla Indian farmers of the now extinct San Cayetano tribe, but a few members of the Montoya family of Cahuilla/Spanish descent were prominent leaders in civic life.citation needed
The first residential development occurred in 1943 in connection with an Army maintenance camp in the area. That site was later developed into "El Paseo", an upscale shopping district not unlike Rodeo Drive. In 1948, the Palm Desert Corporation began to develop real estate, and in 1951 the area was given its present name.