South of the Border was developed by Al Schafer (1914-2001), who founded a beer stand at the location in 1950 and steadily expanded it with Mexican trinkets and numerous kitsch items. He had a great deal of success because of his location, which was immediately across the border from a dry North Carolina county, and grew his small business into what was, by local standards, an economic empire. South of the Border grew to over a square mile, required its own infrastructure, and had its own fire and police departments. Schafer became reclusive, building a large compound of interconnected houses outside the Dillon city limits. At South of the Border, he kept secret apartments hidden in the backs of restaurants and shops.