Pueblo de San José de Guadalupe was founded by José Joaquín Moraga in the year 1777, marking a significant milestone in the Spanish colonization of California. This establishment was the first civilian settlement in Alta California, serving as a launching point for future agricultural and community endeavors in the region. Initiated as part of Spain's broader strategy to bolster its presence in California, the pueblo was strategically located near the fertile lands of the Guadalupe River, ideal for farming. Moraga's founding of the pueblo embraced the Spanish mission system, aimed at converting and settling the local Native American population.

The site was chosen for its water resources and potential for agriculture, providing essential support for more extensive settlements and military outposts in the area. Moraga and his settlers faced numerous challenges, including establishing sustainable agriculture, cultivating relations with indigenous communities, and ensuring their safety and security in a relatively remote and underdeveloped area. The pueblo's establishment laid the groundwork for what would eventually grow into a bustling urban landscape, providing the foundation for modern-day San José.

Over the following years, San José would evolve from a small settlement into a key agricultural hub, facilitating further migration and settlement throughout California. The implications of this settlement were profound, fueling both economic growth and cultural exchange between Spanish colonizers and native populations, while setting the stage for California's eventual integration into the United States.