In 1890, the town was founded as Bonito when several Hispanic families made a deal with a cattle agent to settle here. The land was then deeded to the Butte Land and Cattle Company after the land was proved. In 1901 a post office was established, with Urbano Arrey, who gave his name to the community, as the first postmaster. Today descendants of the original homesteaders still live in the community.[5]
Much of the Arrey economy is based around agriculture. Specifically, the local economy is based around the cultivation of chili peppers, cotton, onions, pumpkins, alfalfa, amongst a series of other crops.[5]
