The town's founding dates to the mid-1850s with the building of a flour-milling operation, Forbes Mill, by James Alexander Forbes along Los Gatos Creek, then called Jones's Creek. The mill's two-story stone storage annex still stands.[7]
The town grew rapidly in the 1960s. As of 2020, it has 33,529 inhabitants.[8]California State Route 17 runs through the town from south to north.
Mission Oaks Hospital is the biggest employer, with 2,000 staff. Netflix is an online movie rental service headquartered in Los Gatos.