No further attempts at holding fairs were recorded until 1932. At this time a small Spring Fiesta was held. The local Chamber of Commerce became quite interested in promoting some kind of fair or festival, and wanted to hold the event each year although financing was somewhat difficult.
In 1933 the people of California voted for horse racing with pari-mutuel betting with the condition that the state revenues generated be used to finance agricultural fairs, encourage breeding of horses, and assist state colleges and universities in their training of youth in agriculture. This same year, Bob Brown discovered, by accident, that in the 1880's, Butte County had been designated the Third Agricultural District.This entitled the County to hold an annual fair if it wished to do so.
In the early thirties, however, this state financial support amounted to little more than enough to pay the premiums. But through much hard work, fair boosters produced celebrations that grew more elaborate and exciting each year. They became so successful that residents of the area complained loudly about the noise and dust, creating a public demand for a new location. After much discussion and evaluation of sites, the new fairground's location was decided upon. It was "south of town and east of Hog Wallow Harber." The land was described as "an assortment of land - one section adobe, some red dirt, and boulders up to the second wire on the fence." The Third District Agricultural Association was officially formed in 1935. In 1938, the present day site was donated to the association by the City of Chico.
The fair became the Butte District Fair in 1939. The townspeople's spirits were very high, and with the help of WPA labor, the fairgrounds witnessed substantial development. A one-section grandstand, two sides of the Education building, and a horse, cow, sheep, and hog barn were all constructed on the site, with everyone in the area becoming involved.