Santa Claus, Indiana, was established in 1854. In 1856, when the town was (then known as Santa Fe, pronounced "fee") working to establish a Post Office; the US Postal Service refused their first application as there was already another Santa Fe, Indiana. Several town meetings were held, during which the name Santa Claus was selected.
The town has the world’s only post office to bear the name of Santa Claus. Because of this popular name, the post office receives thousands of letters to Santa from all over the world each year. A group of volunteers known as "Santa’s Elves" ensures each child receives a reply from Santa Claus; this tradition has been around since at least 1914. Every year, the Post Office also creates a special Christmas 'hand cancellation' pictorial postmark for use during the month of December. This practice attracts mail from all over the world wishing to have the official Santa Claus postmark. The pictorial postmark is chosen each year from submissions from art students at the local high school, Heritage Hills H.S.
Santa Claus is currently home to approximately 2,200 residents. According to the 1990 census, 927 people resided in Santa Claus. By 2000 the town's population had grown to 2,075. A majority of Santa Claus residents live within the gated community of Christmas Lake Village, which was first established in the late 1960s by Bill Koch. It consists of 2,500 acres (10 km2) developed around three lakes: Christmas Lake, Lake Holly, and Lake Noel. The street names in Christmas Lake Village are all themed and named after the Christmas season. Many residents also live in Holiday Village, a subdivision on the north side of town.
Santa Claus is the home to several attractions including: Santa's Candy Castle, Santa Claus Museum, Holiday World & Splashin' Safari, Frosty's Fun Center, Mushie's Car Museum, and Christmas Lake Golf Course.
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