As the holidays kick into high gear and It’s a Wonderful Life (I’m willing to bet you’ve watched it more than once over the years) flickers across TV screens once again, it’s worth remembering that one of Hollywood’s most celebrated directors spent some of his most meaningful years not in Los Angeles — but tucked away in Fallbrook, quietly running an olive and citrus ranch.
Most people know Frank Capra as the man behind the timeless classics It Happened One Night, Mr. Smith Goes to Washington, You Can’t Take It with You, and, of course, It’s a Wonderful Life.
What they may not know is that Capra owned hundreds of acres in Fallbrook, produced olive oil there bearing his own name, raised his family on the property during World War II, and even got pulled into one of the region’s longest-running water battles.
Much of what we know about Capra’s unexpected ties to Fallbrook comes from the Fallbrook Historical Society, whose archival materials, recollections, and research form the backbone of this little-known chapter in Old Hollywood history.
“Behind every successful man there stands an astonished woman.”
frank capra
From Sicily to Hollywood — to Fallbrook
Capra was born in Sicily in 1897 and immigrated to the United States in 1903. His family traveled in steerage, passed through Ellis Island, and settled in Los Angeles with relatives. Capra grew up in a working-class Italian neighborhood in East L.A., later describing it as a “ghetto” in his autobiography.
After serving briefly in World War I, Capra found his way into the budding film industry. He worked his way up from odd jobs in silent film production to directing some of the most iconic American movies ever made. By the late 1930s, he was at the peak of his career, winning multiple Academy Awards and helping define the tone of Golden Age Hollywood.
But success didn’t bring peace. Capra grew frustrated with studio politics and longed for a quieter life — especially as he considered how his parents’ dream of owning an orchard had never been realized.
The Purchase of Red Mountain Ranch
In 1939, while filming Mr. Smith Goes to Washington, Capra asked his father-in-law, Myron “Pop” Warner, to scout rural property where he might someday retire. Warner discovered the historic 536-acre Red Mountain Ranch in Fallbrook, a spread dotted with 105 acres of neglected olive trees, a citrus grove, an olive press, a new reservoir, and sweeping views.
Capra bought it sight unseen for $70,000 — trusting Warner’s judgment entirely. Other celebrities who made Fallbrook home included Dolores Costello Barrymore when her career ended.
Later, also on Warner’s suggestion, he purchased another 520 acres of steep hillsides for only $6,000. Capra planted more citrus and added 52 acres of avocados, setting the stage for a second life far from Hollywood’s lights.
A Hollywood Director Turns Olive Oil Producer
According to Fallbrook Historical Society research, Warner moved onto the ranch as the resident manager while Capra continued working in Los Angeles. Together, the two rehabilitated the overgrown olive groves and restored the on-site olive press.
When World War II disrupted European olive oil imports, Capra launched a mail-order olive oil business labeled: “Fallbrook Olive Oil — Produced by Frank Capra.”
Warner oversaw daily operations while Capra shuttled between Hollywood and Fallbrook. The Fallbrook Historical Society notes that Capra’s wife, Lucille, and their children lived on the ranch throughout much of the war, with Lucille volunteering at the nearby Camp Pendleton naval hospital.
The War Years and a Hollywood Departure
After the attack on Pearl Harbor, Capra resigned from his studio position, accepted an Army commission, and directed the famous Why We Fight documentary series for the Pentagon.
While he worked in Hollywood, his family remained in Fallbrook — and many locals came to know the Capra family well during these years.
The olive oil business declined after the war as European exports resumed, but Capra never gave up on the land.
Did Fallbrook Inspire Names in It’s a Wonderful Life?
Fallbrook Historical Society researchers have long noted a local curiosity: It’s a Wonderful Life, released in 1946, features several character names — Bailey, Potter, Reinman, Clarence, Bert — that match well-known Fallbrook families and figures from the 1940s.
There is no evidence that the characters themselves were based on locals, but the naming parallel has fueled gentle community lore for decades. Capra was living in Fallbrook at the time and knew many of these families — and whether coincidence or inspiration, it’s a charming connection that locals embrace.
The Water Wars: Capra Caught in the Middle
What Capra hoped would be a peaceful country lifestyle instead pulled him into an epic regional battle. The Fallbrook Historical Society documents how farmers, including Capra, had relied on the Santa Margarita River for irrigation for decades. After the military established Camp Pendleton in 1942, tensions over water rights grew.
In 1951, the federal government filed a lawsuit against the Fallbrook Public Utility District (FPUD) — and against dozens of ranchers, including Capra — for alleged interference with Camp Pendleton’s water.
In 1952, the Los Angeles Times financed a short documentary called The Fallbrook Story, promoting local rights to the river. Capra agreed to direct it, but kept his name off the production, believing it wasn’t up to his Hollywood standards, according to the FHS.
Capra was even appointed to the FPUD board in 1953, but quickly found himself embroiled in conflict and resigned two years later. Still, he remained devoted to his ranch and community.
A Social Life Built Around Film
Capra rebuilt the old Victorian home on his property into a modern ranch house in the mid-1950s. According to the Fallbrook Historical Society, he hosted countless gatherings, often showing his movies in a basement decorated with his Academy Awards.
Locals like engineer George Yackey and prominent resident Vince Ross recalled Capra offering to screen any film guests wanted, and It’s a Wonderful Life reportedly played often.
Later Years and Lasting Local Legacy
Capra made only a few more films after 1959 and retired fully by 1966. His wife Lucille died in 1984, and Capra’s health declined soon after. He spent his final years near La Quinta and passed away in 1991 at age 94. (Photos below courtesy of Find a Grave.)
Frank Capra | Lucille Warner Capra | Main Entrance |
Director Frank Capra is laid to rest at the Coachella Valley Public Cemetery in Coachella, just outside Palm Springs, and is buried in Lot 289, Unit 8, Block 7.
His Fallbrook ranch — with its orchards, reservoir, and storied olive oil venture — remains one of the most unexpected chapters of his life. The Santa Margarita River lawsuit, which began in Capra’s era, was not fully settled until 2019.
Today, his Red Mountain Reservoir holds an astonishing 440 million gallons of water.
Zuzu Bailey: “Look, Daddy. Teacher says, every time a bell rings an angel gets his wings.”
Now it’s time to grab the family and the popcorn and nestle in to watch — once again — It’s a Wonderful Life. Now that you know more about the man, you might view it differently this year.
Condensed Filmography — Frank Capra
It Happened One Night (1934) – Won 5 Academy Awards, including Best Picture and Best Director
Mr. Deeds Goes to Town (1936) – Won Academy Award for Best Director
You Can’t Take It With You (1938) – Won Best Picture and Best Director
Mr. Smith Goes to Washington (1939) – Nominated for Best Director
Meet John Doe (1941)
Why We Fight series (1942–45) – Prelude to War won the Academy Award for Best Documentary.
It’s a Wonderful Life (1946) – Nominated for five Academy Awards; later named one of AFI’s 100 Greatest American Films.
A Hole in the Head (1959) – Starring Frank Sinatra
Pocketful of Miracles (1961) – Capra’s final feature film
The Fallbrook Story (1952, uncredited) – Short film made locally for the Fallbrook Chamber of Commerce
Sources
Historical files on Red Mountain Ranch (1887–Capra era)
“Serving Fallbrook: The First 100 Years” (FPUD History Book, 2023)
Tom Frew, Fallbrook Historical Society Historian
The Catastrophe of Success by Joseph McBride (authorized Capra biography)
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