History of the Galveston Bay Area the territory's coastal areas, and therefore continued to allow settlers from the United States into the area with the promise of allegiance to Mexico. Austin's son, Stephen F. Austin, established a colony which extended from east central Texas to Galveston Bay and the Gulf Coast. Some of Austin's original "Old 300" settlers, including John Dickson, William Scott, and John Iiams, established homesteads and commercial enterprises around the bay. The Port of Galveston and a permanent settlement were established on the island in 1825 to spur trade. Communities including Lynchburg, San Jacinto, and Campbell's Bayou (founded by one of Lafitte's former
Galveston Island would hold until nearly the end of the 19th century. Galveston for a time before the American Civil War was the largest cotton shipping port in the world and the second-largest port for immigration in the United States. In the mid-19th century, it was a major port of entry for the many Germans who entered the state. During the Civil War, the Union army seized control of the island from the South for a few months during early 1863. Confederate forces commanded by John B. Magruder expelled them from the island, and the Confederates controlled it for the remainder of