The state of Florida approved the incorporation of part of Loxahatchee, as the Town of Loxahatchee Groves, in 2006, which became the 38th municipality in Palm Beach County. The main reason for incorporating was to protect the area from encroaching growth, and to preserve the rural character of the neighborhood.
Loxahatchee is perhaps the most rural area within proximity to West Palm Beach, with lot sizes ranging from 1–20 acres (0.40–8.09 ha). Loxahatchee and the adjacent The Acreage are notable for loose land restrictions and the presence of native and exotic animals.