In the final draft script of "Borderland", the name of this settlement was formatted "Proxima colony". However, the name was formatted with its two initials capitalized in the final draft script of "Affliction".
Although this colony's location was never established on screen, it shares its name with Proxima Centauri, a star of the Alpha Centauri trinary system.
According to the Stellar Cartography: The Starfleet Reference Library ("Federation Historical Highlights, 2161-2385"), Proxima (Alpha Centauri IV, Velestus) was an inhabited planet in the Proxima Centauristar system. This planet had two moons, named Nykos and Tharon. The Proxima colony was founded on this planet in 2085. In 2161, this planet was a founding member of the UFP. In the late 24th century, the capitals of this world were Cochrane and Tarola'n. The primary species of this planet was Human, with a population of 380 million.