A Look Into Musk’s Company Towns in Texas

Elon Musk is now attempting to create his own private, corporate-run communities in rural Texas. While the idea of building a modern, efficient town like Snailbrook near Bastrop County may sound like a bold step toward a futuristic "utopia," it represents a dangerous throwback to the 19th-century company town—a place where a single corporation’s interests overshadow public rights and local democracy. 

Water tower in Bastrop, TX, where Musk is planning to build company towns

A Town Built on Weak Laws

Musk’s ability to bypass established governmental processes stems directly from the lack of stringent regulations in rural Texas. The proposed 6,000-acre complex known as Snailbrook, named after the emblem of The Boring Company, is located in Bastrop County, an area where development rules are notoriously lax. Experts have described the regional regulatory environment as "the wild West." A Bastrop county commissioner stated that: “If you own the property and you stay within the state laws, you can pretty much do what you want.” This freedom from oversight allowed Musk’s executives to acquire land and begin development quickly, sometimes even before obtaining required permits.

In another move to gain autonomy, Musk’s venture in South Texas, Starbase, was successfully incorporated into a "type-C municipal corporation." This means the town is now run by a government commission composed largely of current or former SpaceX employees. By incorporating, the company effectively gained the power to regulate itself, making decisions about public roads, beaches, and land use without needing approval from external county authorities. This included sending notices to residents that were previously living there that their property rights could be removed. 

The Price of Corporate Control

The core danger of a company town lies in the absolute control the employer holds over its residents' lives. In the 19th and early 20th centuries, miners and textile workers were often paid in company scrip, forced to shop at company-owned stores, and lived in company-owned housing, creating crippling dependency. Snailbrook presents a modern version of this model.

While rents in Snailbrook are reportedly much cheaper than in nearby Austin, the housing comes with a critical catch. According to reports, employees residing in company-provided homes must sign an agreement stating they will vacate their residence within 30 days of leaving or being fired. This condition instantly ties a worker's shelter and stability to their employment status, granting the corporation immense leverage. Brett Theodos, a senior fellow at the Urban Institute, observed that these projects ultimately reflect "a desire for control that billionaires want to create the world in an image that they like."

Urban planners and historians view this structure with deep suspicion. "When I hear the word 'company town,' I'm always a little bit suspicious because historically, they were very controlled towns and very top-down institutions," said history professor Ángela Vergara, who noted that such towns historically struggle with issues of human rights and democracy.

The critical perspective is solidified by a documented pattern of ignoring local regulations and failing to ensure

transparency. Musk’s companies have repeatedly faced scrutiny and penalties for environmental violations in Bastrop County, including issues related to unpermitted driveways, unauthorized sewage tanks, and improper disposal of sediment-laden water. A Local resident Chap Ambrose has actively tracked these issues and questioned the company's integrity, stating, "How can we trust them to do the right thing underground when they've shown contempt for our minimal, rural permitting process?"

Seeking Tax Breaks

Beyond gaining full control over construction, a major goal of creating these corporate compounds is the relentless pursuit of tax breaks. Musk, who once complained about "over-taxation" in California, chose Texas partly because it offers fewer regulations and no corporate income tax. However, his companies go further to minimize local contributions. For instance, businesses linked to Musk ensure that much of the thousands of acres of undeveloped land acquired for the town in Bastrop County benefits from agricultural exemptions, drastically reducing the property tax bill. 

It can be seen that Musk and his businesses are continuing to try and push tax breaks as far as they can go. The Boring Company suggested that because there is a preschool on their land, they should not have to pay a school tax. They also suggested that donating undeveloped land for recreational purposes should result in more tax breaks since it is a charitable donation.