This article examines the effect of location on the development of new universities. The study was conducted in seven new higher education institutions (HEIs) established in India during 1996-2008. I collected the data by conducting semi-structured interviews with 73 faculty members in the HEIs and from official documents, media reports and opinion pieces about the HEIs. Using the conceptual framework of path dependency, I investigated the tensions and challenges faced by the HEIs in their initial years. I find the placement of the HEIs in their respective locations to be a contingent event that can make the development of HEIs path dependent. I find that the initial conditions and decisions of the HEIs were influenced by the location and led to reactive sequential events in their initial years with effects that were hard to shake off, making their development path dependent. I show that having to develop their infrastructure and constrained by resources, the HEIs started their academic programmes first, followed by their research activities, and outreach and regional engagement.