The first land transaction in the area dates back to 1835, but it wasn't until the early 1950s that the community of Sunset Valley was developed. It was at that time that two brothers, Clarence and M. H. Flournoy purchased a large tract of land for a residential subdivision. The landscape, a wooded valley nestled among rolling hills on the western edge of Austin, inspired the name Sunset Valley. In September 1954, Sunset Valley was incorporated as a town and established a mayor/council form of government. Clinton Vilven became the first mayor of the newly incorporated community. About a month after incorporation, Sunset Valley experienced the first of a series of deannexations through the years as petitioners applied to deannex various tracts while the town annexed other tracts.