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By 1845, the population of the pueblo had increased to 900, primarily due to American immigration.
On his way back to Mexico from San Francisco, de Anza chose the sites in Santa Clara Valley for a civilian settlement, San Jose, on the eastern bank of the Guadalupe River, and a mission on its western bank, Mission Santa Clara de Asís.
Forbes, founder of Los Gatos, California (granted Rancho Potrero de Santa Clara), Antonio Suñol, Alcalde of San Jose (granted Rancho Los Coches), and José María Alviso, Alcalde of San Jose (granted Rancho Milpitas).
In 1835, San Jose's population of approximately 700 people included 40 foreigners, primarily Americans and Englishmen.
In 1800, due to the growing population in the northern part of the Californias, Diego de Borica, Governor of the Californias, officially split the province into two parts: Alta California (Upper California), which would eventually become a U. state, and Baja California (Lower California), which would eventually become two Mexican states.
San Jose became part of the First Mexican Empire in 1821, after Mexico's War of Independence was won against the Spanish Crown, and in 1824, part of the First Mexican Republic.