It is located in the Clear Lake Area near Galveston Bay, directly adjacent to the Lyndon B. Johnson Space Center.

In 1962, a community was planned which would be an exclusive residential and commercial area emphasizing its pioneers and at a then-staggering cost of $49 million.

At the time, NASA was moving personnel from several areas in the United States with a high quality of life, including California and, notably, Florida.

Across the creek and lake, Nassau Bay is bordered by League City in Galveston County.

[4] It is adjacent to the Johnson Space Center (JSC), which lies on the other side of Texas State Highway NASA Road 1 within the Houston city limits.

[5] Carlton Bayou, Clear Lake, and Swan Lagoon serve as boundaries of the community.

According to the 2000 U.S. census, the racial makeup of the city was 89.64% White, 3.91% Asian, 2.23% of multi-racial background, 1.87% African American,1.68% from other races, 0.50% Native American, and 0.17% Pacific Islander.

[20] The portion of Clear Creek ISD in Harris County (and therefore Nassau Bay) is assigned to San Jacinto College.