The settlement was established in 2002 by a group of young families. It is named after Boaz from the Book of Ruth.
In its charter, Sde Boaz proclaims its desire to live in peace with its Arab neighbors and eschew violence. It is an environmentally friendly agricultural community that accepts both religious and non-religious Jews. 
Most of the residents are free professionals who commute to work. Apart from communal agriculture projects, some families engage in private organic farming, raising chickpeas, cauliflower, tomatoes, watermelons, lettuce, grapes, mulberries and olives. Experimental crops include tomatillos, North American pumpkins and sweet peas.