The Gaviota Coast area known as Naples received its name in 1887 from John H. Williams and his wife Alice, wealthy world travelers from Ohio. The couple envisioned a grand project that included a world-class hotel, the Crescent Beach Hotel, and a planned community called Naples-by-the-Sea, with the expectation of significant financial returns.
The Williamses, who spent their summers in Naples, Italy, and winters in Santa Barbara, frequently noted the resemblance of the Dos Pueblos Ranch area to their beloved Italian locale during steamship journeys. Influenced by the California real estate boom of 1886-1887—sparked by the completion of a San Francisco to Los Angeles railroad line that saw Los Angeles land values surge—they decided to invest. The promise of a Coastal Route railroad connecting Los Angeles to San Francisco via Santa Barbara further fueled their excitement in Goleta.
On June 2, 1887, John Williams purchased 900 acres of oceanfront land from Rosa Den's widower for $50,000. He then established the Naples Improvement Company, enlisting four executives from the Southern Pacific Railroad as partners who assured him the coastal rail line’s completion was imminent. A nationwide advertising campaign was quickly launched, promoting the area's climate and describing the hotel and town as if they already existed. Advertisements depicted boating on "Naples Bay" and a "Dos Pueblos River" with a magnificent harbor, which was, in reality, a shallow duck pond.
The city was laid out on paper with numbered east-west streets and north-south avenues bearing names like Vesuvius, Aetna, and Capri. Two existing roads were named Patti and Langtry, after celebrities of the era. Much of the exaggerated advertising was targeted at metropolitan areas on the East Coast, where potential investors would be less likely to see the undeveloped land firsthand. To attract attention from the sea, huge 20-foot wooden letters spelling NAPLES were erected on the bluffs, visible ten miles offshore, though they eventually blew down in 1890 storms.
The completion of the Coastal railroad line was crucial, not only for bringing in construction supplies but also as a major selling point for the development. However, an economic downturn led to funds for the rail being diverted, halting progress at Ellwood for 14 years. This delay proved disastrous for Williams’ original plan, as the land boom would be over by the time the railroad eventually reached Naples.
Despite the setbacks, John Williams did manage to build a small Naples Hotel and a small town. He acquired lumber from a schooner anchored off Dos Pueblos canyon, and his alternative plan focused on creating a farming community to supply produce for the envisioned 5,000 residents. He also established the Dos Pueblos Water Company, constructing a dam upstream and water mains to the town site. The small town of Naples developed a social life, with the Naples Dance Hall becoming a popular spot and a local baseball team, the Naples 9.
Following John Williams’ death on December 15, 1895, Alice Williams remained determined to realize her husband’s dream. In his honor, she built a Gothic church on the east rim of Dos Pueblos Canyon, sparing no expense with imported stained glass windows and Tuscan slate shingles. Gargoyles with panther heads adorned the structure. John Williams’ remains were entombed in a mausoleum at the church, alongside the embalmed carcasses of two of her pug dogs, a detail that reportedly dismayed the community. Sculptured likenesses of the dogs' heads were carved into the church's exterior. Locals called the empty, never-used church a "dog cemetery" and the "Haunted Chapel." It sat unused for 27 years, a prominent landmark between Santa Barbara and Gaviota.
Alice Williams, who became known as an eccentric and a recluse, continued to await the railroad's arrival. On March 31, 1901, she stood on the platform of the newly completed Naples train station, holding roses, and ceremoniously garlanded the cowcatcher of the first train arriving from Los Angeles.