Ann Arbor was founded in 1824, named for wives of the village's founders, both named Ann, and the stands of bur oak trees. The University of Michigan moved from Detroit to Ann Arbor in 1837, and the city grew at a rapid rate in the early to mid-20th century. During the 1960s and 70s, the city gained a reputation as a center for left-wing politics. Ann Arbor became a focal point for political activism, such as opposition to the Vietnam War and support for the legalization of cannabis.

The University of Michigan shapes Ann Arbor's economy significantly. It employs about 30,000 workers, including about 12,000 in the medical center. Other employers are drawn to the area by the university's research and development money, and by its graduates. High tech, health services and biotechnology are other major components of the city's economy; numerous medical offices, laboratories, and associated companies are located in the city. Automobile manufacturers, such as General Motors and Visteon, also employ residents.