Once called Mos Pelgo, and alternatively known as Free City, Freetown was a settlement situated in the northern region of the planet Tatooine. In the year 4 ABY, the Mining Collective forcibly gathered the residents of this settlement for labor purposes. However, one individual, the Sheriff named Cobb Vanth, managed to steal a camtono filled with silicax oxalate crystals from them before making his escape into the desert. Eventually, Vanth encountered a Jawa sandcrawler where he bartered the stolen crystals in exchange for a suit of Mandalorian armor. Shortly thereafter, Adwin Charu, a miner representing the newly formed Red Key Company, arrived to negotiate with the Jawas. When Charu attempted to seize the armor for himself, Vanth fatally shot him before departing. Upon his return to Mos Pelgo, he single-handedly freed the settlement from the control of the Mining Collective, effectively becoming its de facto mayor and protector.
The settlement then became known as Freetown and served as the location for a conflict between the Red Key Raiders and those allied with Vanth. Sometime later, Vanth mounted a defense for the inhabitants against attacks from Tusken Raiders targeting their village. By approximately 9 ABY, the settlement had reverted to its original name, Mos Pelgo. The Mandalorian bounty hunter Din Djarin journeyed to Mos Pelgo in search of another Mandalorian. Upon his encounter with Vanth, he obtained the armor after assisting him in killing a krayt dragon responsible for preying on Mos Pelgo's livestock. Following this triumph, the settlement was once again renamed Freetown. Subsequently, Djarin returned to the settlement, requesting Vanth's assistance to aid Boba Fett in his struggle against the Pyke Syndicate. After Djarin's departure, Cad Bane arrived in the settlement, shooting deputy Scott and Vanth. Later on, the settlement's garrison joined the battle against the Pykes seeking vengeance. A beverage referred to as the "Freetown Reserve" was formulated on Tatooine and subsequently gained popularity in a lounge situated elsewhere in the galaxy.