The settlement was started in the early 1970s on the land of a farm whose original house still stands (serving as a boarding cattery) adjacent to the community centre (known locally as 'The Barns').

In the 1980s Bett Housing (later to be taken over by Lema Homes) began building on the site at the entry of Tweedbank from Galashiels; this estate included the streets Abbotslea, Riverside Drive, Abbotsferry Road, Lowood Park, Ladymoss and Heathery Rigg.

The final development in the 2000s was constructed by Barratt Homes in the area around Weavers Linn, built on the former Abbotsford to Lowood road (later a footpath).

In addition to residential housing and the Primary School, Tweedbank also boasts an all weather sports complex, an Astroturf football and hockey pitch, an indoor bowling club, a large children's all-weather play area, and the Gun Knowe Loch, which is actually a man-made lake.

Each year in May, the village celebrates a week-long 'Tweedbank Fair' in which a local 'Tweedbank Lad and Lass' (together with two attendants each) are appointed from members of the school's Primary Seven class.