Mars Colony was officially founded on July 9th, 1998. In a joint effort between the Aerican Empire and the ally microstates of Vanya and Lothlorrien (both long-since defunct), 2000 acres (3.125 miles square) of land were purchased from the Lunar Embassy, an organization based in California with a dubious but entertaining legal claim to all celestial bodies in the solar system with the exception of Earth. The Empire claimed 1.125 miles and named this territory Mars Colony.

The early history of Mars Colony contains little excitement. Directly ruled by the Emperor, Mars Colony remained uninhabited and undeveloped at first. When the Empire first entered online micronationalism, however, Mars Colony was suddenly thrust into the spotlight. Not only was Mars the Empire's only colony, it was also the Empire's only legally purchased holding, and because the Empire was among the first if not the very first micronation to make a reasonable space claim, Mars Colony was also something of a curiosity to visitors. To bring Mars Colony into the new era, the government was restructured, to be managed by an elected governor, and Tristan Glark became the first leader of Mars Colony.

Over the years since the end of the twentieth century, Mars Colony has grown and thrived as one of the Empire's premier lands. Its history is still being written today by the proud citizens who call Mars their home.