The olive came to California with the Franciscan Missionaries, led by Father Junipero Serra. The Franciscans planted olives at all of their missions, and the olive was a part of the mission economy. Olive cultivation then spread from the missions to other areas in waves. The first wave brought the olive to Shasta, Tehama, Butte, and Glenn counties. Later waves brought the olive down to Calaveras County and to Tulare, Madera, Kern, Kings, and Fresno counties in the San Joaquin Valley.

Olives were originally grown in California for producing olive oil. Over time, however, the industry focus shifted away from oil to canning. This was due largely to the fact that California oils could not compete on a price basis with imported oils.

The California olive oil market reemerged in the 1990s and is growing today. Currently, there are well over one hundred olive oil producers in California.