Urbanization is thought to decrease riparian tree canopy cover, but this outcome may vary depending on geographic context. We examined changes in land cover and riparian tree canopy near Sacramento, California, a Mediterranean climate region impacted by agriculture before urbanization. We used aerial imagery to quantify changes in land cover and the area, width, and density of riparian tree canopy between 1937 and 2014 for the 85-km2 Arcade Creek watershed. While watershed land cover shifted almost entirely from pasture and crops to urban development, riparian forested area increased by 38 percent. The median width of riparian tree canopy more than doubled, and the density along smaller streams increased significantly (p < 0.0001). We used multiple data sources to examine potential drivers of these changes. Stream gage data and field observations indicated that the formerly intermittent Arcade Creek stream network receives spatially and temporally variable dry-season flow subsidies from urban runoff, but widespread channel incision may limit the impact of subsidies on riparian vegetation. Accordingly, sampling of riparian woody plants showed few hydrophilic species growing along these streams. Instead we found evidence of native oak regeneration and a high density of escaped horticultural species. The increase in riparian forest cover was thus likely due to changes in vegetation management and species composition from land use conversion, possibly augmented by increased dry-season water availability. The changes in canopy cover we quantified stand in contrast to the accepted pattern of riparian forest decline with urbanization, and are expected to affect ecosystem services.