Sausalito Sausalito is a great place to visit for any San Francisco Bay travel since it combines the old and new worlds. In the early 1800s, before California joined the Union, it was Rancho Sausalito: Sausalito is Spanish for "little willow grove." In the 1870s, the railroad added a terminus in Sausalito, where a rail yard and ferry to San Francisco were established. By the '20s, a major auto ferry across the Golden Gate waterway was established, which ceased operation shortly after the Golden Gate Bridge opened in May of 1937. During World War II, a major shipyard was sited along the shoreline of Sausalito, and after the war a livly waterfront community grew out of the abandoned ship yards. By the late '60s at least three house boat communities occupied the waterfront as well -- Sausalito is still home to one of the largest houseboat communities on the West Coast -- adding color to the otherwise affluent "Hill People" living in the mega expensive houses perched along the steep slopes above the waterfront. It's easy to enjoy the local flavor downtown with world-class restaurants and stunning Bay views. Sausalito has diversity beyond its size and seems to welcome all.