Bee Cave was named by early settlers for a large cave of wild bees found near the site. A post office opened there under the name Bee Caves in 1870. The city wasn't incorporated until 1987.
As of the census of 2000, there were 656 people, 207 households, and 172 families residing in the city. The population density was 252.0 people per square mile (97.4/km). There were 246 housing units at an average density of 94.5 per square mile (36.5/km). The racial makeup of the city was 94.21% white, 0.15% Native American, 0.15% Asian, 3.51% from other races, and 1.98% from two or more races. Hispanic or Latino of any race were 7.62% of the population.
In 2007, the Texas Legislature declared the West Pole of the Earth to be located in Bee Cave, TX.
American Campus Communities has its headquarters in Buildings S and T in the Hill Country Galleria shopping development, in Bee Cave. The company offices were scheduled to open there in December 2010.
In 2015 the median income for a household in the city was $129,270, and the median house value was $597,091. Males had a median income of $100,000 versus $59,000 for females. The per capita income for the city was $53,911. None of the families and 2.7% of the population were living below the poverty line, including no under eighteens and none of those over 74.
