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The first white resident of Garibaldi was Charley Farwell, who moved to the area in 1856. Its first significant property owner was Daniel Bayley, who settled the area after the Civil War, building a hotel and general store. At that time, the community was known as Bay Lane. As the settlement's first postmaster, Bayley renamed the town for Giuseppe Garibaldi, who helped to unify Italy. Garibaldi was incorporated as a city in 1946.

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