As the expansion of Wlotzkasbaken stopped in the 1970s when recreational developments were exclusively for Whites, it currently[update] still has no residents of previously disadvantaged population groups.

Paul Wlotzka (1870-1942), a member of the surveying team, chose this place to erect a storage structure to support his frequent horse cart rides between Swakopmund and Hentiesbay.

A Government Notice from 1993 converted it back to a settlement area, denying the establishment of a Village Council for self-governance.

[3] Only a few of its residents permanently live in Wlotzkasbaken, while during the holiday months of December and January several hundred people stay here, and the annual "Marterpfahl" (literally German: torture stake) angling festival between Christmas and New Year's Eve lures several thousand visitors to the sleepy village.

[2] Plans to develop the area into a holiday town and prime tourist destination comprising 2,800 separate properties[6] led to a multitude of lawsuits between the Wlotzkasbaken Home Owners Association and the Erongo Regional Council.

An agreement was reached in 2000 to expand the number of erven to 248, giving the existing lessees the option to buy the piece of land they had rented and developed.

[7] History and structure of the settlement—most prominently the situation that its last expansion occurred before Namibian independence and the abolishment of apartheid—have led to accusations that the community of Wlotzkasbaken intentionally keeps Blacks out of their holiday village.

[2] The homogenous character of the village and its special community rules have evoked some mockery; causing it sometimes to be called the "Free Republic of Wlotzkasbaken" in jest.