The area was inhabited by
Tiwa peoples from nearby
Picuris Pueblo, then settled by Spanish colonists under the 1725 Embudo Land Grant. The original name was El Puerto del Embudo de Nuestro Señor San Antonio and the grant was made in 1725, to Francisco Martín, Lázaro Córdova and Juan Márquez. The
acequias (
irrigation canals) were the first public works project of any land grant, so they were started immediately after settlement, on September 20, 1725, and there are 10 Historic Acequias with senior water rights on the Embudo River and one with junior water rights. On the Rio Grande there are two with senior rights and two with junior water rights. The
aldea was known as San Antonio del Embudo until around 1900 when a post office was established and the name was changed to Dixon, reputedly to honor Collins Dixon, a school teacher who taught here in the late 19th century; one tradition has him being a
Civil War army deserter; his descendants live around nearby
Española. ==Climate and wineries==