[1] The City (or District) was built in 1959 by Prime Minister Abdul Karim Qassim in response to grave housing shortages in Baghdad.

Naziha al-Dulaimi was instrumental in turning the vast slums of eastern Baghdad into a massive public works and housing project that came to be known as Revolution City.

[6] In the 1980s, the district became known for poverty and communist organizing, with illegal documents and, in some cases, people themselves being hidden from the authorities in overflowing septic tanks.

[7] The proliferation of communism in the district was seen by some as ironic, given how Doxiadis's design had been considered "anticommunist" with the view that it promoted a village atmosphere in an effort to ease the transition of rural migrants to the city.

In April, 2003, the US Army 2d Squadron, 2nd Armored Cavalry Regiment established their headquarters at the abandoned Sumer cigarette factory located on the eastern side of Sadr City.

[citation needed] During the fall and winter of 2003, American forces focused on rebuilding civilian infrastructure and training local leaders in democracy.

The municipal building became the centerpiece of the reconstruction effort, and it was the site of a forward outpost of American soldiers that met daily with council members and citizens.

[11] On November 9, 2003, a violent confrontation erupted between the chairman of the District Council, elements of the 2d ACR, and a team from the 490th Civil Affairs Battalion.

[9] Throughout March 2004 through July 2004, FOB IronHorse, in Sadr City, elements of the 1st Brigade Combat Team and the 13th Signal Battalion were hit almost daily with Mortars and RPGs.

[13] In late 2004 the Mahdi Army enacted a cease-fire with U.S. troops, and offered to help repair and rebuild the city's main infrastructure which was leaving millions without electricity, water or sewage.

[14] On May 15, 2005 the bodies of 13 Iraqis were discovered in a shallow grave, each blindfolded, tied and shot multiple times in the back of the head.

[16] In August 2005 the Iraqi government and the U.S. Army locked down Sadr City for three days to search houses for hostages and death squads.

[20] On April 6 Iraqi and U.S. forces moved into the southern third of Sadr City to prevent rocket and mortar fire being launched from the area.

The Mahdi fighters were able to destroy two HMMWVs and two MRAPs, however, the unit responded with combined air and ground strikes and used tanks, attack helicopters, and heavy weapons to repel the assault while claiming the deaths of nearly 30 militants.

[28] After a year of relative calm, Sadr City was struck by a massive bomb blast on June 24, 2009 when a bomb-laden vegetable cart or motorcycle was detonated in the Muraidi Market of the town, killing at least 69 civilians and wounding over 150.

[29] In 2010, a Turkish consortium of contractors won the bid for the reconstruction of Baghdad's Sadr City, offering to complete the massive project for $11.3 billion.