Long before Europeans arrived to what is now called Carmel, Carmel-by-the-Sea as originally proclaimed by Father Junipero Serra, local natives of the Esselen, Ohlone and Salinan tribes flourished there. Ancestors of the Esselen Indians are believed to be the first inhabitants. Later, tribes from the east joined with the Esselen Indians to become the Ohlone, and the Salinan Indians lived further south.

Juan Rodriguez Cabrillo was the first European to discover Monterey Bay. While high seas prevented him from landing, he nonetheless claimed the land for Spain in 1542.

Monterey was the Spanish-Mexican capital on the Pacific coast, settled in 1770. The town flourished briefly as the American capital after 1846. Eventually the Gold Rush shifted population growth slightly north, to San Francisco and Sacramento, the logical way-stop to the mines. The missions were the center of early Californian life, until 1822 when Mexico declared its independence from Spain.

By the beginning of the 20th century, 1904, the rich began to inhabit Carmel and built vacation homes there. With its scenic location, it is a tourist center and has been a retreat for artists and writers since it's founding in 1904. Nearby is Mission San Carlos Borromeo (1771) burial place Father Junipero Serra, who brought the mission to Carmel. The name of the village is taken from the bay, which was named in 1602 by an expedition of the Spanish explorer Sabastion Vixcaino that included a group of Carmelite monks.

Spanish and Mexican influences are strongly felt in downtown Monterey, both in historic buildings and continuing architectural legacy. You can trace the Path of History with a walking tour past 46 historic buildings constructed before the 1848 Gold Rush.