The American Indian Movement (AIM) occupied the Pine Ridge Reservation near Wounded Knee in protest against the federal government on February 27, 1973. A 71-day standoff between federal authorities and the AIM ensued. The militants surrendered on May 8.
As of the census of 2000, there are 328 people, 54 households, and 52 families residing in the town. The population density is 118.4/km² (306.0/mi²). There are 56 housing units at an average density of 20.2/km² (52.2/mi²). The racial makeup of the town is 1.22% White, 0.00% African American, 98.78% Native American, 0.00% Asian, 0.00% Pacific Islander, 0.00% from other races, and 0.00% from two or more races. 0.91% of the population are Hispanic or Latino of any race.
There are 54 households out of which 61.1% have children under the age of 18 living with them, 51.9% are married couples living together, 35.2% have a female householder with no husband present, and 1.9% are non-families. 1.9% of all households are made up of individuals and 0.0% have someone living alone who is 65 years of age or older. The average household size is 6.07 and the average family size is 6.04.
In the town the population is spread out with 50.6% under the age of 18, 10.4% from 18 to 24, 25.0% from 25 to 44, 10.4% from 45 to 64, and 3.7% who are 65 years of age or older. The median age is 18 years. For every 100 females there are 108.9 males. For every 100 females age 18 and over, there are 102.5 males.
The median income for a household in the town is $12,206, and the median income for a family is $12,206. Males have a median income of $0 versus $13,333 for females. The per capita income for the town is $2,403. 81.1% of the population and 72.2% of families are below the poverty line. Out of the total people living in poverty, 83.8% are under the age of 18 and 0.0% are 65 or older.