Children's Fairyland was the first three-dimensional storybook theme park in the U.S. It was build for $50,000 in 1950. On opening day, 6000 children streamed through Old Mother Hubbard's Shoe and into the park to play. For thirty years, Children's Fairyland remained a treasure that welcomed 10 million visitors including Walt Disney, who was so impressed with the children's park that he based his theme park on Fairyland and enticed its first director, Dorothy Manes, to become his director.

In 1994, a public/partnership agreement between the City of Oakland and Oakland Children's Fairyland, Inc. resulted in Fairyland becoming a new 501 (c) (3) nonprofit organization, ID#94-3209054. The City of Oakland owns the property and pays utilities. The nonprofit organization manages the operation and restoration of Children's Fairyland. Also overseeing the budget, capital improvements and fundraising. Fairyland is in the midst of a major renovation project meant to improve customer service and achieve self-sufficiency to include a new exciting and vibrant entrance, an expanded restaurant facility and a larger gift shop.