Murphy is bordered by the cities of Plano, Richardson, Wylie, Sachse, and Parker and consists of approximately 5 square miles. It is approximately 20 miles from downtown Dallas, 35 miles from DFW Airport, and 25 miles from Love Field Airport.

By the 1980s the population began to rise as families were drawn to the community where lot sizes ranged from 1 to 5 acres. Businesses began to return to the community. As Murphy grew, the school districts serving the community were divided between the Plano Independent School District and the Wylie Independent School District.