According to the Smithsonian's Bureau of American Ethnology, the word 'Topanga' means 'above place' or 'sky' or 'heaven.' It refers to the village's location above the waters of Topanga Creek. The name was apparently given to the area by the Tongva tribe whose territory bordered the Chumash (of Malibu and the its Northern coastal areas).

The land was first settled in 1839 by the Trujillo and Cheney families.

Much later, during the '20s, it gained popularity with the denizens of Hollywood. As an ideal getaway not far from urban conveniences, it was the perfect site for weekend cottages, which actors and other industry people built there at the time.