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It was built by the settlers of Tatooine, from metals and ores they were able to eke out of the desert. It was destroyed shortly after completion when the Obvious Nirvana suddenly rushed at the station during docking and collided with it. An investigation was launched, and it was discovered that the native Tatooinian metals used to construct the station had unusual magnetic properties. Thus, when the Obvious Nirvana approached it, Tatoo III suddenly became a huge magnet. This change in polarity drew the Obvious Nirvana into the station.
This one setback marked the beginning of the hardest years Tatooine had ever seen. Finding it too expensive to counteract this, the planet was abandoned as a mining colony. The original colonists remained, but Tatooine's prosperity came to an end.