In the early 20th century, the community grew in economic importance as its location made it attractive to foreign investment with the building of the Pan-American Highway, originally as a rail line.

[2] As municipal seat, Ciudad Ixtepec has governing authority over the following communities:[2] As of 2005, there were 6,481 households with a population of 24,181, of whom 4,667 spoke an indigenous language.

Like Ixtaltepec, Juchitán and Tehuantepec, Ixtepec has a significant native Zapotec population.

Ixtepec used to be an important railway center point, but nowadays no passenger train traffic runs through.

Economic activities include very limited agriculture on 972 hectares of irrigated land growing corn, sorghum, sesame and vegetables, 408 small farms raising cattle, pigs or goats, fish hatcheries for crappie, tilapia and red snapper, manufacture of bricks, school uniforms and home furnishings, and mining of black clay for making pots and figurines and adobe bricks.