The modern town was founded on April 2, 1922 by a group of 22 Second Aliyah pioneers led by David Schneiderman. The group purchased 300 dunams () of land on the outskirts of Tel Aviv that became the Borochov Neighbourhood ("Shechunat/Shekhunat Borochov"), the first workers' neighbourhood in the country. It was named for Dov Ber Borochov, founder of the Poalei Zion workers' party. Later, another 70 families joined the group, receiving smaller plots. The land was purchased with their private savings, but was voluntarily transferred to the Jewish National Fund, which organized Jewish settlement at the time, in keeping with the pioneers' socialist beliefs.