Doroteo Arango, for that was Pancho Villa's real name, was born in the state of Durango in 1878, a share-cropper peasant on a hacienda. According to the legend, one day when he was sixteen, he returned home from the fields to find that his sister had been raped by the owner of the hacienda, Don Agustin López Negrete. Doroteo took up his revolver, shot Don Agustin, and escaped into the mountains on a horse.

He became a cattle rustler and later joined a band of rustlers that was led by a man named Francisco "Pancho" Villa. In one of their many skirmishes with the law, the group was surprised by a group of rurales (mounted police) and Francisco was killed. Doroteo then took command of the gang and also assumed the name of the fallen leader. He may have done this to throw off those who hunted him for the murder of the hacienda owner or he may have done this to insure his authority over the group. Anyway, from that time on it was he who was known as Francisco "Pancho" Villa.