It lies 20 miles (32 km) east of the City of Brownsville on the Boca Chica peninsula, and forms part of the Brownsville–Harlingen–Raymondville and the Matamoros–Brownsville metropolitan areas.

[10] The town was founded as Kennedy Shores in 1967 by John Caputa, a Chicagoan property developer, and was initially aimed at working-class Polish migrants.

[11] After building a community of about 30 ranch-style houses, the settlement was devastated by Hurricane Beulah later that year, which destroyed the restaurant and public utility systems.

It was seen as empty space by both SpaceX and the state which is exemplified by Elon Musk saying ‘we’ve got a load of land with nobody around, so if it blows up, its cool’ in 2018.

[25] The Houston Chronicle reported that the county seems to be taking a broader view of what is best for the "local economy, educational system, and quality of living in a region that is one of the poorest in the state.

[25] The New York Times reported in late September that SpaceX extended the original two-week offer period by three weeks, in order to allow property owners to work with the county appraiser in order to potentially get their assessed valuations adjusted upward based on improvements beyond what the previous appraisal understood.

[28] "David Finlay, SpaceX’s Senior Director of Finance, told Boca Chica Village residents that this would be SpaceX’s final and best offer, and threatened the company would need to pursue alternate means to obtain the homes if the people of Boca Chica Village turned down the money.

... 'the scale and frequency of spaceflight activities at the site continue to accelerate, your property will frequently fall within established hazard zones in which no civilians will be permitted to remain, in order to comply with all federal and other public safety regulations.

'"[28] In March 2021, Elon Musk stated that he intends to incorporate Boca Chica Village into Starbase, Texas.