Since 1937 motorists driving between Phoenix, Arizona, and Las Vegas, Nevada, or Hoover Dam have noticed the setting since 1937. In the early years it was a welcome place to stop on their roadtrip.

Nina Talbot, a real estate woman and the origianl owner of Santa Claus, made plans to use the Santa theme in a parched desert location to attract buyers for her surrounding, subdivided land. By 1942, the town of Santa Claus had become a full-fledged tourist spot.

After twelve years operating Santa Claus, Talbot's land resale plans for Santa Claus never materialized, in part because the only inhabitants in the town were the ones working there. Talbot sold her interest in the town in 1949.

Others made plans during the 1950s to improve Santa Claus, which received publicity through the writings of American novelist and famed science fiction writer Robert A Heinlein and U.S. pioneer restaurant rater Duncan Hines and through 1961 remaining service advertisements offering to postmark letters from Santa Claus, for a small fee.

The popularity of Santa Claus went in decline in the 1970s and the few remaining structures and attractions have become weather worn.

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