The City of Terrell Hills, along with the City of Alamo Heights and the City of Olmos Park, is part of a relatively exclusive and geographically enclosed enclave of spacious up-scale older homes in neighborhoods with large, old trees, larger lots, and a definite 'feel' of exclusivity.  The original community was named for Dr. Frederick Terrell, a bank president and former mayor of the City of San Antonio, and was originally a 22-acre tract of relatively hilly land just north of downtown.  In 1939, it was incorporated as a municipality, but in 1945, the City of San Antonio threatened to annex the community without an election.  Residents loudly and successfully sued to block the annexation.  Terrell Hills is bordered on the west first by the City of Alamo Heights, then by the City of Olmos Park, all of which are surrounded by the City of San Antonio.  Terrell Hills is an independent municipality, with city hall, fire and police services, lovely tree-lined neighborhoods, but few commercial areas  The small Alamo Heights Independent School District, which also serves Alamo Heights and Olmos Park, is considered one of the best public school districts in Texas (www.ahisd.org).

Many residents of Alamo Heights, Terrell Hills and Olmos Park are descendants of the original German and Canary Island settlers, and their families have lived in one of the three small cities for generations.  The area is often referred to as "09" (zip code 78209), and residents are known as "0h-niners." Because few can imagine living anywhere else, the relatively small number of properties that become available for sale are greatly sought after, and some of the smaller lots with original small cottages now are covered with 'McMansions.'  Within the past 5-10 years, all three small exclusive cities have passed ordinances to contain and architecturally control some of the explosive re-building, and to preserve the wonderful original 'neighborhood' ambience of the area. 

Located just north of Fort Sam Houston and downtown San Antonio, Terrell Hills is approximately 10 minutes away from the Central Business District/Riverwalk area, and is also within 5-10 minutes of San Antonio International Airport on the north.