Archaeological evidence demonstrates that the town was established in the 2nd century BC during the Hasmonean period. The site had no defensive wall and extended along the shore of the nearby lake (from east to west). The cemetery zone is found 200 meters north of the synagogue, which places it beyond the inhabited area of the town. It extended 3 kilometres to Tabgha, an area which appears to have been used for agricultural purposes, judging by the many oil and grain mills which were discovered in the excavation. Fishing was also a source of income; the remains of another harbour were found to the west of that built by the Franciscans.
No sources have been found for the belief that Capernaum was involved in the bloody Jewish revolts against the Romans, the First Jewish-Roman War (AD 66–73) or Bar Kokhba's revolt (132–135), although there is reason to believe that Josephus, one of the Jewish generals during the earlier revolt, was taken to Capernaum (which he called "Kapharnakos") after a fall from his horse in nearby Bethsaida(Josephus, Vita, 72).
Josephus referred to Capernaum as a fertile spring. He stayed the night there after spraining his ankle. During the first Jewish revolt of 66–70 Capernaum was spared as it was never occupied by the Romans
