The origins of Tracy are related to the mid-19th century construction of Central Pacific Railroad lines running from Sacramento through Stockton and to the San Francisco Bay Area. Tracy is part of the San Jose-San Francisco-Oakland, CA Combined Statistical Area, an extension of the Bay Area. A number of small communities sprang up along these lines, including the one named for railroad director Lathrop J. Tracy. Incorporated in 1911, Tracy grew rapidly and prospered as an agricultural area even when railroad operations began to decline in the 1950s. Beginning in the 1980s, Tracy experienced a growth spurt as people migrated to the city looking for affordable alternatives to Bay Area home prices, in addition to a more tranquil lifestyle. A steady period of growth ensued, as many companies found Tracy an ideal location for their distribution facilities.
Three main school districts serve the city of Tracy. The largest and most recognized is the Tracy Unified School District. This school system incorporates many elementary and middle schools as well as six Tracy high schools.
Tracy is located inside a geographic triangle formed by Interstate 205 on the north side of the city, Interstate 5 to the east, and Interstate 580 to the southwest; this has given rise to Tracy's motto, now recorded on the city's website: "Think Inside the Triangle".