Zionism, anti-Semitism, agronomist, an engineer, a banker, and one Mrs. Paulina became the key elements in creating the "Nahariya Tiny Farms Ltd.“ company. This contributed to the formation of the city of Nahariya as it is today.

On the 10th of February 1935, Nahariya was established some years after a small group of Zionists, made up of Mr. Yosef Levy, who was an engineer, Heinrich Cohen, a banker, Dr. Zelig Eugen Soskin, an agronomist and Mrs. Paulina Wengrover-Zalkind, together purchased 2400 dunams of land on the Ga’aton River, establishing a company called "Nahariya Small Farms Ltd", choosing the name after the river (Nahal Hagaaton) that flowed through the settlement.

Most of the first settlers, who came from Germany, were part of the fifth wave of immigration. These settlers engaged in agriculture, despite not having much experience or knowledge of farming. Their perseverance and strong desire to succeed resulted in Nahariya's agricultural produce gaining a great reputation.

In order to supply water to the farms, a water tower was built, later becoming the symbol of the settlement. Along the Ga'aton stream, eucalyptus trees were planted in an attempt to prevent flooding in the winter. For several years, Nahariya was the only Hebrew settlement in the Western Galilee, and during the 30s, Nahariya played a key role in the establishment of neighboring settlements and was also a strategic partner in maintaining their security.
In 1938, during the siege on the shores of the country, 7 illegal immigrant ships arrived in the Nahariya area.

According to the UN resolution of November 29, 1947, the Land of Israel was divided into a Jewish and an Arab state, excluding Nahariya from the Jewish state, but just before the declaration of the state, on May 14, 1948, Nahariya was included in the liberation of the entire Western Galilee, thus including it into the new State of Israel.

In the 50s, Nahariya absorbed immigrants from Romania, Poland, Persia, Yemen, Iraq, and later during the 60s, many immigrants from Morocco were also absorbed into the city. In 1961, Nahariya was recognized as a city and throughout the 60s and 70s, Nahariya became the city for Israel's honeymoon couples. Factories such as Strauss, Soglowek and Iscar grew in Nahariya, becoming a big part of the metal and food industry in the country.

During the 80s, following the First Lebanon War, UN soldiers began living in Nahariya. Immigrants from the former Soviet Union during the 90s were successfully absorbed into the city. They were later joined by many immigrants from South America, the United States and France.

Today, Nahariya has over 70,000 residents and provides various services in the fields of trade, tourism, and business, to a population twice the size of the residents.