After the success of Cyrano de Bergerac, Edmond Rostand settled in Cambo-les-Bains to treat a lung ailment and bought the land where Arnaga would be built. The author entrusted the project to the architect Albert Tournaire. He wanted a residence "Basque in style on the outside, a palace on the inside." The villa would be built of concrete and equipped with electricity, running water, hot water, and coal heating.

Edmond Rostand was going to celebrate the armistice in Paris. He contracted Spanish fever and died in Paris a few weeks later at the age of 50.

The City of Cambo-les-Bains buys back the estate and the Villa becomes a museum open to the public.

The Rostand family settled in Arnaga. The interior decoration and the landscaping of the French and English gardens continued for several more years, until 1913. Electric heaters were also installed in the Villa, replacing coal heating with electric heating.

The furnishings of Villa Arnaga were sold at auction, and the family decided to sell the estate as well the following year, in 1923. A Brazilian industrialist couple, the Souza-Costas, purchased it. The Fleyshmans would be the third and final private owners.

In 1995, the Villa was listed as a Historical Monument. This listing was extended to the entire estate, including the Stables, in 2014. The Villa was also recognized as a Museum of France in 2002.