The founding of Los Gatos can be traced back to the mid-19th century when it was part of the larger region of Alta California under Mexican rule. The area's name, which translates to "The Cats" in Spanish, derives from the numerous bobcats that once roamed the foothills of the Santa Cruz Mountains.
In 1840, the Mexican government granted the Rancho Rinconada de Los Gatos, a 6,631-acre land parcel, to Sebastian Peralta and Jose Hernandez. This grant marked the initial European settlement in the area. Post the Mexican-American War and the Treaty of Guadalupe Hidalgo in 1848, California became part of the United States, and the land underwent significant changes.
The arrival of the Southern Pacific Railroad in 1878 was pivotal in Los Gatos’ development. This event transformed the sleepy town into a bustling hub, attracting settlers, merchants, and tourists. The railroad station became a central point for the transportation of goods, particularly lumber from the Santa Cruz Mountains, and fruit from local orchards.
One notable figure in the town's history is James Alexander Forbes, who built the Forbes Mill in 1854 along Los Gatos Creek. The mill, which produced flour, became a cornerstone of the local economy. Today, the site is preserved as a museum, providing insight into the town's early industrial activities.
The town incorporated in 1887, largely due to the efforts of residents seeking better infrastructure and public services. The incorporation allowed for the establishment of a local government, which facilitated the development of essential amenities such as schools and roads.
Another interesting aspect of Los Gatos' history is its association with the arts. By the late 19th and early 20th centuries, it had become a retreat for writers, artists, and musicians. Notable residents included author John Steinbeck and poet Nora May French, who found inspiration in the picturesque surroundings.
The town also has a unique connection to early aviation history. In the 1910s, Harry Houdini tested and flew one of his early airplanes in Los Gatos, adding to its eclectic historical tapestry.
Throughout its history, Los Gatos has maintained its charm and historical significance, blending its rich past with modern development. The preservation of historical sites and the celebration of its cultural heritage continue to define the community.