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Before the arrival of the Spanish, the area around San Jose was inhabited by the Ohlone people.

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San Jose was California's first state capital, and hosted the first and second sessions (1850–1851) of the California Legislature.While San José is commonly spelled both with and without the acute accent over the "e," the city's official guidelines indicate that it should be spelled with the accent most of the time and sets forth narrow exceptions, such as when the spelling is in URLs, when the name appears in all-capital letters, when the name is used on social media sites where the diacritical mark does not render properly, and where San Jose is part of the proper name of another organization or business, such as San Jose Silicon Valley Chamber of Commerce, that has chosen not to use the accent-marked name. Census indicated that San Jose surpassed San Francisco as the most populous city in the Bay Area for the first time.San Jose's position in Silicon Valley triggered further economic and population growth. Efforts to increase density continued into the 1990s when an update of the 1974 urban plan kept the urban growth boundaries intact and voters rejected a ballot measure to ease development restrictions in the foothills.Following World War II, San Jose experienced an economic boom, with a rapid population growth and aggressive annexation of nearby cities and communities carried out in the 1950s and 60s. Census indicated that San Jose had officially surpassed San Francisco as the most populous city in Northern California.The rapid growth of the high-technology and electronics industries further accelerated the transition from an agricultural center to an urbanized metropolitan area. San Jose's location within the booming high tech industry, as a cultural, political, and economic center has earned the city the nickname "Capital of Silicon Valley".

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