In 1839, Juan Bautista Alvarado, Mexican governor of Alta California, granted the responsibility of colonizing the Sacramento Valley to Swiss-born Mexican citizen John Augustus Sutter, who subsequently established Sutter's Fort and the settlement at the Rancho Nueva Helvetia. Following the American Conquest of California and the 1848 Treaty of Guadalupe-Hidalgo, the waterfront developed by Sutter began to be developed, and incorporated in 1850 as the City of Sacramento.

Typical of California informality, Sacramento is referred to by many nicknames. The most common are Capital City, River City (after the confluence of the Sacramento and American Rivers), and the City of Trees due to its abundant urban forest.

Nisenan, Modoc, and Plains Miwok Native Americans had lived in the area for perhaps thousands of years. Unlike the settlers who eventually made Sacramento their home, these Native Americans left little evidence of their existence. Their diet was dominated by acorns taken from the plentiful oak trees in the region and by fruits, bulbs, seeds, and roots gathered throughout the year.

The Pony Express was a mail service delivering messages, newspapers, and mail using relays of horse-mounted riders between St. Joseph, Missouri, and Sacramento, California, with letters delivered in 10 days. Despite a heavy subsidy, the Pony Express was not a financial success and went bankrupt in 18 months after faster telegraph service was established.

President Gerald Ford spent the night at Sacramento's Senator Hotel before the September 5, 1975, assassination attempt on him by Charles Manson disciple Lynette "Squeaky" Fromme, who served 34 years in prison before being paroled in 2009.

The Sacramento Kings moved to Sacramento from Kansas City in 1985 and are currently Sacramento's only major professional sports team. Their best season to date in the city was 2001-02 when they had the best record in the NBA at 61-21 (a winning percentage of .744).

In 1850 and again in 1861, floods overwhelmed Sacramento. Governor Stanford had to attend his inauguration, which was not too far from his house on N Street, in a rowboat. The flood waters were so bad that, according to legend, he had to enter through a second floor window when he returned to his house.

The Sacramento Area Music Awards (or SAMMIES) is an annual event hosted by Sacramento News & Review that acknowledges individual musicians and musical groups in the greater Sacramento region. Winners are selected by SN&R readers in a list of musical genres. After winning 3 years, performers are inducted into the Hall of Fame and can no longer be nominated for a SAMMIE.

In 1903, the first car dealership opened, and one year later, twenty-seven Sacramento residents owned cars.

The official demonym is Sacramentan.