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Though the exact origin of the name is unknown, most locals point to the original Soquel locals, the Ohlone Indians, as giving them their area's name. Their word for the creek running through town was Osocalis and you can hear the similar sound. In the early 1800s, the area was granted to Martina Castro and became Rancho Soquel. By the way, to blend in right away, pronounce it So-kell, not So-quelle.
Though sometimes the water comes to you: until the mid-1980s, the town had quite the reputation for flooding in its lowland areas