The site of Berkeley was the land of the Chochenyo, or Huchiun, Ohlone when Europeans arrived. They ground acorns and seeds in pits in the rocks, and a shellmound, now mostly leveled, stood on the bayshore at the mouth of Strawberry Creek. Native burials have been found in West Berkeley and on the campus along the creek.
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The first people of European descent came with the de Anza expedition of 1776, which led to the founding of the Presidio of San Francisco. Luis Peralta, a soldier there, was rewarded with a vast grant on the east shore of the bay, Rancho San Antonio, where he raised cattle for meat and hides. He divided it among his four sons, and most of Berkeley lies in the share of Domingo Peralta, with a little in Vicente's. Their names survive in the streets Domingo, Vicente and Peralta, and land titles in the city still trace back to the Peralta grant. After the American takeover and the Gold Rush, squatters and dubious lawsuits stripped the brothers of most of their land. Alameda County was created on March 25, 1853, and the area became part of Oakland Township, mostly farms and ranches with a busy wharf on the bay.
In 1866 Oakland's private College of California chose a new site on Strawberry Creek at the foot of the hills, about 500 feet above the bay. According to the university's Centennial Record, college men at Founders' Rock watched two ships sail out through the Golden Gate, and Frederick Billings, recalling a line by the philosopher George Berkeley, "westward the course of empire takes its way," proposed naming the town and college site for him.
Sources
Wikipedia: Berkeley, California