Early pioneers included Joseph Sweetser and Francis De Long who bought 15,000 acres (61 km2) in the mid-1850s and planted orchards and vineyards.

[13] The first school was built in 1859, at the corner of Grant Avenue and what is today Redwood Boulevard.

A railroad was built in 1879, connecting Novato to Sonoma County and San Rafael.

The Great Depression of the 1930s had a marked effect on the area, as many farmers lost their land.

After World War II, Novato grew quickly with the construction of tract homes and a freeway.

Beard-growing contests, sponsored by Bob's Barber Shop, and many other odd activities helped to bring this community together.

Novato includes ten Marin County Open Space District preserves: Mount Burdell, Rush Creek, Little Mountain, Verissimo Hills, Indian Tree, Deer Island, Indian Valley, Ignacio Valley, Loma Verde, and Pacheco Valle.

Compared to records from Hamilton Air Force Base, San Rafael is generally several degrees warmer than Novato and has an average of about 10 inches (25 cm) more rainfall.

[19] Novato has a history of flooding due to its low-lying position, as well as the fact that much of the city used to be marshland.

All five councilmembers are elected by city council districts to staggered four-year terms.

The city is home to the Buck Institute for Research on Aging, and several biotech firms, such as Biosearch Technologies, BioMarin Pharmaceutical and Ultragenyx.

[32] Several small technology companies are also based in Novato, such as 2K, Radiant Logic, Toys For Bob, One Legal, International Genetics Incorporated, Channel Management Solutions, Enwisen, Sonic Solutions and DriveSavers.

The former Hamilton Air Force Base is also located in Novato, but was decommissioned in 1974 and designated a Historic District in 1998.

After lying stagnant for many years, major renovations were pushed through by then-mayor Michael DiGiorgio.

The former hangar buildings were gutted and redeveloped into two-story office buildings; tenants include 2K Sports, Sony Imageworks, Visual Concepts, The Republic of Tea, Toys For Bob, and Birkenstock Distribution USA.

[34] From the 1982 until 2015, Novato was headquarters for Fireman's Fund Insurance Company, which was Marin County's largest employer at one time, with 2,400 employees as of 2000.

[35] In Eastern Novato, north of Hamilton, there are several hayfields contributing to the local economy, but they are diminishing as more and more of them are restored to wetlands.

Mount Burdell ended up being the source of hundreds of thousands of hand-cut andesite paving blocks, that were used as ballast in ships and street construction as far away as in Europe.

Many of San Francisco's foundations and retaining walls from before the 1906 earthquake also came from Mount Burdell.

[36] As of 2018–19 the city's principal employers were:[37] Novato is a destination for outdoor enthusiasts, with its many parks and open space preserves providing ample hiking trails, biking trails, picnic spots, and playgrounds.

Parks and open space preserves featuring hiking trails include: Buck Gulch Falls (also known as the Fairway Waterfall)[38] is located in the Ignacio Valley Preserve, and can be accessed from the trailhead at the end of Fairway Drive.

There is also a waterfall in the Indian Valley Open Space Preserve, along the Ken Harth Waterfall Trail, and another in the Pacheco Valle Preserve, at the end of Pacheco Creek Drive.

These waterfalls are seasonal, flowing in winter and spring, but slowing to a trickle or drying up completely in the summer and fall.

The pathway around the pond displays signs created by artist Emma Oyle that highlight the wildlife seen in the area.

[43] Each June, Novato produces the Novato Art Wine & Music Festival,[44] featuring two music stages, 200 arts and crafts booths, wine and beer booths, and a kids section with games.

Other popular Novato events include Rock the Block, a series of concerts on Grant Avenue in the summer, Safe Trick or Treat[45] each Halloween, the annual Christmas Tree Lighting on Sherman Avenue,[46] and the annual Bouncy Ball New Year on Machin Avenue,[47] where 24,000 bouncy balls are dropped from a fire engine ladder for children to catch.