Nazareth is a small town situated in Galilee. It is just west of Capernaum and not far from Cana. It was built partly in a valley and partly on the slope of a hill. Populated at the time of Jesus by mostly Gentiles, the city is not mentioned in the Old Testament. It was considered of little significance, with a special contempt and distrust placed upon it. This contempt was expressed by Nathanael while Jesus was in the process of calling him to be one of the twelve disciples.
44. On the next day, Jesus desired to go into Galilee; and He found Philip and said to him, "Follow Me." 45. Now Philip was from Bethsaida, the city of Andrew and Peter. 46. Philip found Nathanael and said to him, "We have found Him of Whom Moses wrote in the Law, and also the prophets, Jesus, the son of Joseph; He is from Nazareth."
47. And Nathanael said to him, "Can any good thing come out of Nazareth?" Philip said to him, "Come and see." (John 1:44-47, Holy Bible in Its Original Order - A Faithful Version (HBFV) throughout)
The best explanation of the city's name is that it comes from the word translated 'Branch' in Isaiah 11:1, a passage of scripture that offers prophecies concerning the coming of Jesus.
1. And there shall come forth a shoot out from the stump of Jesse, and a BRANCH shall grow out of his roots. 2. And the Spirit of the LORD shall rest upon Him, the spirit of wisdom and understanding, the spirit of counsel and might, the spirit of knowledge and of the fear of the LORD. 3. And His delight shall be in the fear of the LORD. And He shall not judge according to the sight of His eyes, nor after the hearing of His ears.
4. But with righteousness He shall judge the poor, and shall reprove with equity for the meek of the earth. And He shall strike the earth with the rod of His mouth, and with the breath of His lips He shall slay the wicked. (Isaiah 11:1-4)
Joseph and Mary fled to Egypt with baby Jesus in order to avoid the wrath of Herod. When the came back to Judea they decided to live in Nazareth. Jesus lived in the city until he moved to Capernaum at the beginning of his ministry.
22. But when he (Joseph) heard that Archelaus was reigning over Judea instead of Herod his father, he was afraid to go there; and after being divinely instructed in a dream, he went into the parts of Galilee.
23. And after arriving, he dwelt in a city called Nazareth; that it might be fulfilled which was spoken by the prophets, "He (Jesus) shall be called a Nazarean." (Matthew 2:22-23)
13. And after leaving Nazareth, He (Jesus) came and dwelt in Capernaum, which is on the seaside, on the borders of Zabulon and Nephthalim; 17. From that time Jesus began to preach and to say, "Repent, for the kingdom of heaven is at hand." (Matthew 4:13, 17)