Tiberias was founded in 18 AD by Herod Antipas, son of Herod the Great and Jewish ruler of the Galilee (4 BC-39 AD). He was appointed by Augustus Caesar as the ruler of Galilee and Peraea, the east bank of Jordan. He made the new city his capital, and named the city after the Roman emperor, Tiberius Caesar.
Later (54AD) the emperor Claudius added his name to the city - Tiberias Claudiupolis. Herod also minted coins in the city, with its name on it, thus showing its important role.
It took the city more than 110 years to find a religious way to overcome this problem, move the graves out and "Kosher" the city .