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It was not until 1769 that the Spanish estabilshed Mission San Diego de Alcala in San Diego, in an effort to establish possession of California to prevent Russian settlers from entering the area. The Mission was the first of 21 Missions established throughout California by the Spanish. These Missions eventually would be placed about every 30 miles, or a long days travel to facilitate trade.

The town of Monterey was established in 1770 by Father Junípero Serra and Gaspar de Portolà, and served as the capital of California from 1777 to 1849, under the flags of Spain, Mexico and Argentina. Portola erected the Presidio of Monterey to defend the port against expected Russian invasion. Father Serra eventually selected a site near the mouth of the Carmel River to construct the second of California's 21 missions, Mission Carmel.

The Mission San Juan Capistrano was founded more than two hundred years ago as the 7th of a string of 21 missions across the state, and includes a chapel still standing where its founder, Fr. Serra, once celebrated Mass. Today it is a monument to California's multi-cultural history, embracing its Native American, Spanish, Mexican and European heritage. The Mission was originally built as a self sufficient community by the Padres and Indians, with the Mission as a center for agriculture, industry, education and religion.

Mexican independence from Spain in 1821 marked the end of European rule in California. The Spanish missions faded in importance under Mexican control, while ranching and trade increased. By the mid-1840s, the increased presence of Americans made the northern part of the state diverge from southern California, where the Spanish-speaking "Californios" were centered. Sacramento and the Americans dominated trading while the Californios dominated ranching.

Mexican rule ended 25 years later during the Mexican American War, with most towns in California being captured in small, relatively bloodless battles. As part of the treaty ending the war, the US gave Mexico $18,250,000 in exchange for California and a large portion of what is now the western United States. At the time of the exchange, California was sparsely populated, with a non-native population of under 10,000.

Explosive population growth and statehood came shortly after the discovery of gold in 1849 at Sutter's Mill, near Sacramento. About 300,000 "49ers" travelled to California in the next six years, seeking to make their fortune. The nearest deep-water seaport was San Francisco Bay, and San Francisco quickly grew and became the home for the bankers who financed exploration for gold.