Construction on this 570-acre community began in 1962.  The Earnest W. Roe Building Company of Houston built the initial homes in the neighborhood.  They were 3 and 4 bedroom homes with prices ranging from $20,000 to $30,000.  The first home sold in September 1963 and the first family to live in Nassau Bay was Mr. & Mrs. David Bell and their son Scott.  In 1963 a set of three "U" shaped buildings were built along NASA Parkway to accommodate the changing needs of companies contracting for NASA.  At this time most of Nassau Bays residents were associated with the space program.   

In 1963 Houston annexed a 10-foot strip around Nassau Bay.  That strip put Nassau Bay into the 5-mile radius of Houston's extra-territorial jurisdiction (ETJ), which kept Nassau Bay from incorporating.  In 1969 it was ruled that Houston's strip annexation was invalid and Nassau Bay formed a Committee for Incorporation of Nassau Bay.  The residents of Nassau Bay realized that Houston would soon be annexing them and that they needed to incorporate.  They were not only a residential area, but also accommodated a large number of commercial businesses as well.  In 1970 a vote was taken and Nassau Bay incorporated.