Gilroy is the southernmost city in Santa Clara County, California, United States. The population was 48,821 at the 2010 census. Gilroy is well known for its garlic crop and for the annual Gilroy Garlic Festival, featuring various garlicky foods, including garlic ice cream. Gilroy also produces mushrooms in considerable quantity. Gilroy's nickname is "Garlic Capital of the World," although Gilroy does not lead the world in garlic production. While garlic is grown in Gilroy, its nickname comes from the fact that Gilroy Foods processes more garlic than any other factory in the world; most pickled, minced, and powdered garlic come from Gilroy. Boutique wine production is a large part of Gilroy's western portion, mostly consisting of older family estates around the Mount Madonna County Park mountain bases.
Approximately eight miles northeast of Gilroy, via Gilroy Hot Springs Road, lies the famous Victorian resort Gilroy Yamato Hot Springs, a California Historical Landmark. Gilroy also is home to the Gilroy Premium Outlets, a large shopping center consisting entirely of factory outlet stores.
Trailblazers led by Father Junípero Serra began to arrive in the area in the 1770s, and in 1797 Mission San Juan Bautista was established near the Pajaro River. In 1809, Ygnacio Ortega was granted the 13,066-acre (5,288 ha) Spanish land concession Rancho San Ysidro. The village of San Ysidro (not to be confused with the present-Day San Diego community) grew nearby, at the foot of Pacheco Pass which linked the El Camino Real and the Santa Clara Valley with the San Joaquin Valley. California's main export at this time was tallow and thousands of barrels were produced and shipped to the rest of New Spain. Trade and diplomatic intercourse with foreigners was strictly forbidden by the royal government but was quietly performed by Californios desperate for luxury goods.