The village started in 1950 at the beginning of operations of the Nevada Test Site as Base Camp Mercury, a military-style encampment built to provide basic facilities for personnel involved.

As the scope of the testing program expanded, so did the number of personnel required to fulfill the site's mission, and beginning in 1951 a $6.7 million construction project was undertaken to provide adequate individual housing, office, and service structures with a civilian village-like design.

A school was established, and numerous recreational and shopping facilities were added, including a movie theater, bowling alley, recreation hall, swimming pool, and hobby center, as well as a full-care health clinic, library, lodging (the Atomic Motel being the most prominent example), a non-denominational chapel with a cadre of chaplains, a service station with a garage, and a bus station.

In 1962, the Desert Rock Airport was added for the visit from President John F. Kennedy on December 8.

A skeleton crew of scientists and military remains in Mercury, conducting limited testing and research.