The early ownership of the Palos Verdes Peninsula had been disputed for many years between the Sepulveda family and the Dominquez family. In 1834, a judicial decree was made by Governor Jose Figueroa which was intended to settle the dispute between the Dominquez and Sepulveda famiies, and Juan Capistrano Sepulveda and Jose Loreto Sepulveda were awarded the 31,629 acre Rancho Palos Verdes. Figueroa also stipulated in his decree that Manuel Gutierrez may remain as a resident and free to graze his stock on the rancho for the rest of his life, providing he gave up all claim of ownership to Rancho San Pedro. The partition decree left the Dominguez family with 43,119 acres reducing Rancho San Pedro nearly by half the area of the original grant.

Rancho de los Palos Verdes
Extent of original grant of the Rancho San Pedro and the Rancho de los Palos Verdes, with present-day city boundaries and streets (note that the eastern boundary was probably the original path of the Los Angeles River) –Jack Moffett

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