It was the Straw Hat Pirates' first stop during the Arabasta Arc, where they managed to re-supply and buy clothing for traversal of the Sandora Desert. It's also the place where Monkey D. Luffy reunited with his older brother, Portgas D. Ace, for the first time after leaving Foosha Village.
Nanohana resembles a typical middle-eastern desert town, following the conventions of Islamic architecture. It features a crowded and thriving bazaar. As expected of a port town, it has docks where ships can load up or unload cargo.
This town is the principal entrance of Arabasta, making it a popular target for pirate attacks (especially during times of war). Because it utilizes water from the neighboring Katorea, Nanohana is not affected much by the drought in Arabasta.
During Operation Utopia, a good portion of the city was burned down and crushed by a runaway galleon that crashed in from the sea, leading to the loss of various shops and at least a hospital. At the end of the Arabasta Arc, the citizens of Nanohana were seen ready to repair the damages caused by Baroque Works' scheme.
The only known restaurant in the town is Spice Bean, run by Yoshimoto. Portgas D. Ace was eating here until he got approached by Marine captain Smoker. Monkey D. Luffy then crashed into the establishment, accidentally launching both Ace and Smoker through the restaurant's walls.
Three years before the present story line, some delivery men, who happened to be Baroque Works agents in disguise, brought a large shipment of Dance Power into nanohana. They staged an accident in which the cart would break and the bundles containing the Dance Powder would rip open and spill the substance. The agents then lied that the king had ordered for the powder to be delivered to Alubarna, the city where it rained the most. They then fled leaving all those who witnessed the staged accident to doubt the king.
Nanohana is first seen under attack by a pirate crew led by Puppu, who was taking advantage of the then ongoing civil war to pillage the town. Crocodile, who had been notified of the attack by Miss All Sunday, went to Nanohana and easily defeated the invaders through his sand abilities, to the cheers of the Nanohana population.
Later, the Straw Hats Pirates anchored at Nanohana. Luffy, hungry from the long journey, stormed off into town without waiting for his crew. At a bar, he interrupted a confrontation between a man named Portgas D. Ace and Captain Smoker of the Marines, knocking both through the wall without his noticing. Smoker stood up and gave chase when Luffy realized who he was and ran away, leading the Marines directly to his crewmates that were purchasing provisions and water in the town. Just as Smoker was about catch them, Ace interrupted and secured an escape route for the Straw Hat Pirates.
Meanwhile, in Smoker's ship, Mr. 11, who had been previously captured at Renaisse, attempted to free himself from the Marines' custody. A group of Billions then boarded the Marine ship, with one of them killing Mr. 11 in order to open up a spot among the Baroque Works' Frontier Agents.
Back on the Going Merry, Luffy told the crew the man who saved them was his brother. Ace then hopped onto the ship and met the crew, giving Luffy a piece of paper before leaving and destroying seven ships with Billions of the Baroque Works on the way out. Vivi also sent Karoo with a message to Alubarna to warn the King.
During Operation Utopia, Mr. 2 Bon Kurei and the Billions working under him headed to Nanohana under the guise of Nefertari Cobra and some Royal Guards. Pretending to "apologize" for the Dance Powder incident, the fake Cobra ordered that Nanohana be set ablaze in order to erase the incident from history. Koza, who was at Katorea at the time, came to Nanohana and uselessly attempted to reason with the fake Cobra. As Koza got shot by one of the disguised Billions, an enormous weapons ship pioneered by Mr. 1 and Miss Doublefinger crashed into Nanohana's port, crushing part of the town.
The incident, masterminded by Mr. 0, successfully riled the population up, who had trouble stopping the fire from spreading due to the lack of water, resulting in them joining into Koza's cause. As Mr. 2 escaped from Nanohana, a young local boy witnessed his ability at work, figuring out that the Cobra who ordered the destruction of the town was a fake. Unfortunately for the boy, he was caught spying on Mr. 2 by Mr. 1 and Miss Doublefinger, who attempted to silence him. The boy survived, but was unable to alert the Rebel Army about what he saw due to the shock.
Later, Igaram, who survived Miss All Sunday's attack near Cactus Island, arrived at Nanohana and heard Kappa's story, bringing him to Alubarna so the boy could reveal the truth to the rebels and royal soldiers.
At the end of the arc, after Nefertari Vivi delivered her speech to the whole nation about her experience with the Straw Hat Pirates, the citizens of Nanohana felt motivated to fix the damages caused to the town..