The town's name was inspired by the wildflowers found in the spring. In the 1880s, the Rio Verde Canal Co. was going to turn open grazing land into irrigated farmland, but the idea was abandoned and the area witnessed a boom in home building. The town was incorporated in 1961 and has the highest median income and the largest percentage of college graduates in the area.
Paradise Valley is zoned almost exclusively for single family homes.
Homes nestled in the town enjoy magnificent views of the Phoenix Mountain Range, as well as, Camelback and Mummy Mountains. The town grew to approximately 14 square miles in 1980. During the 1980s, the Mummy Mountain Preserve was established, reflecting the town s desire to maintain its Sonoran Desert heritage. By 1995, the town had grown to 16.5 square miles. But this small community, with limited building, is also host to 11 resorts, including the Camelback Inn, El Chorro Lodge and Hermosa Inn.