Peñitas, whose name means "Little Pebbles" after local gravel deposits, grew from the Spanish colonization efforts of José de Escandón, who in 1749 settled families on the Villa of Nuestra Señora de Guadalupe de Reynosa land grant in Mexico. It developed on ejidos north of Reynosa that served as grazing land for livestock, and Escandón chose a site west of Reynosa for a mission. Soon the small mission San Joaquin del Monte was established to minister to indigenous people and settlers on the north bank and to protect colonists from attacks. The area quickly became a commercial center for Reynosa, where residents gathered to buy and sell goods, and the salt trade was especially profitable because salt was essential for preserving food and curing hides. By the 1760s, settlers were working ranches on the north bank of the Rio Grande, and by 1767 the Spanish government had granted porciones to some colonists while others rented ejido land for ranching or farming. Ranching communities then developed on the ejidos, including Penitas, Tabasco, and Ojo de Agua, which later became the towns of Peñitas, La Joya, and Abram. In the mid-1800s, Peñitas became a refueling stop for steamboat traffic, and by the early 20th century it had residences, stores, a cemetery, a post office, a school, and a stop on the St. Louis, Brownsville and Mexico Railroad. Incorporated in 1992, Peñitas continues to thrive as a community rich in cultural heritage.