In November 1997, Henderson, Nevada approved the first phase of Anthem by annexing 2,535 acres (1,026 ha) of vacant land into the city.

[2][4] As part of the annexation agreement, Del Webb and property owners would be responsible for projects such as the paving of roads and the installation of sewer lines and utilities.

[2] By January 1998, the inspector general for the U.S. Department of the Interior was investigating the land swap deal after former and current BLM officials complained about it.

The deal also raised questions about the involvement of Bruce Babbitt and senator Harry Reid, who both supported it.

[10] Sun City Anthem offered new residents free advice from professional home designers.

[11] At the time of opening, construction was nearing completion on two golf courses, and had begun on a 74,000 sq ft (6,900 m2) recreation center.

[15] Anthem Country Club opened its golf course in April 1999,[10][16] and received approval for residential units in August 1999.

[17] That year, Del Webb transferred ownership of 147 acres of Lake Tahoe land, including the Thunderbird Lodge, to the BLM.