This roadside attraction is not a town or other administrative location, but simply a name for a business along U. S. Highway 101 catering to tourists interested in purchasing Christmas themed souvenirs during their travels in southern California.
The description states:
SANTA CLAUS IN SUNNY CALIFORNIA
On Highway 101 where the mountains meet the sea.
– TOYLAND –
Santa’s Wonderland by the sea.
–The business location on Highway 101 proved initially very profitable, but when the Interstate Highway system replaced such older highways for inter-city travel, business declined significantly. This business was located on Santa Claus Lane in Carpenteria, California, but has closed, though the Santa atop the far building was preserved and made a landmark.
The car shown indicates this image is from the 1950s.