The association began on August 8, 1927, when artists met at a home and studio called Gray Gables at Seventh and Lincoln. The idea came from Jennie V. Cannon of Berkeley, a regular visitor who owned a summer cottage in the village. Pedro Joseph de Lemos was elected first president.
In late October 1927 it held its first exhibition, with 41 artists, in the Seven Arts Building. The association filed articles of incorporation in January 1934.
Today it is a not-for-profit gallery that shows the work of artists living on the Monterey Peninsula, and it counts many early California artists among its past members. The surrealist Salvador Dalí joined as a member and served as a juror for a 1947 student contest it sponsored.