The only officially registered "town" in the state of California (the Town Council petitioned the state to allow them to call it a town "in order to preserve quaintness"). You can't paint or in any other way manipulate your house without getting the modifications approved by the Town Council. People who are at one point Mayor of the town usually teach at the high school, which has been used for exterior footage in a number of movies and television shows (I recently saw it on Nickelodeon's "All That" of all things. They often film movie-of-the-week things there about anorexia nervosa or teen pregnancy, usually starring one of Fred Savage or Joey Lawrence's brothers).
Down about a block from the high school is a Ferrari dealership, which is currently stocked with 360 Modena convertibles and coupes, as well as vintage classics (including the occasional MG). Right next door to that is a bungalow-style hotel in which Joe DiMaggio and Marilyn Monroe spent their first night as man and wife.
Los Gatos, if nothing else, is a town that revels in the idea that it is the embodiment of a positive stereotype. Main Street and North Santa Cruz Avenue are perpetually spotted with affluent jogger/biker types who have nothing better to do than sip coffee and admire each other's recent purchases from the aforementioned Ferrari dealership because their start-up just went public.
All in all though, it's not a bad place to live, definitely not a bad place to raise a family, especially when you consider that the police department's top targets are the kids who smoke cigarettes in front of 7-eleven or behind the church near the high school, and people who park in front of the movie theater. It's the kind of town that produces adolescents reminiscent of the works of Kevin Williamson (Dawson's Creek, et. al.).
Incidentally, "Los Gatos" translated from Spanish means "The Cats."