Capitola is located on the northern shores of Monterey Bay, on the Central Coast of California.

This wharf, which dates back to the 1850s, served as an outlet for the produce and lumber grown in the interior.

In 1865, Captain John Pope Davenport, a whaleman at Monterey, moved his operations to be near the wharf.

Unable to capture any whales, he moved his operations the following year to Point Año Nuevo.

[4][5] In 1869, Frederick A. Hihn, who owned the property in the vicinity of the wharf, decided to develop it as a seaside resort.

Several possibilities have been asserted, one being that it was named for the heroine of The Hidden Hand, a novel by the popular author E. D. E. N. Southworth, favored by Hall's daughter Lulu.

Alfred Hitchcock was a regular visitor to nearby Santa Cruz and read about this episode.

The reason for this attack remained unknown for over 25 years until it was discovered that the birds had been affected by domoic acid, a toxin produced by red algae.

[8] The Capitola Classic was known in skating circles for its annual downhill race, which was a head-to-head speed competition that drew top names in the sport, many local as well as international, including Santa Cruz, California local John Hutson, who held the world speed record for skateboarding at 53.45 mph and dominated the event each year.

[9] On March 24, 2011, a drainage pipe burst following heavy rains, sending a surge of water through the historic village area.

Colorful houses and hotels line the slopes of the town leading back up to the clifftops.

[citation needed] Capitola has mild weather throughout the year, enjoying a Mediterranean climate (Köppen Csb) characterized by cool, wet winters and warm, mostly dry summers.

Due to its proximity to Monterey Bay, fog and low overcast are common during the night and morning hours, especially in the summer.

[citation needed] The[update] 2010 United States Census[19] reported that Capitola had a population of 9,918.

The Capitola Mall, the only enclosed regional shopping center in Santa Cruz County is slated for redevelopment into a mixed use project with increasing pressure due to the failure of the traditional mall concept.