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
Free State of Galveston the Gulf Coast and along the shores of the bay. Immediately after the hurricane, Galveston worked to revive itself as a port and an entertainment center, including the construction of tourist destinations such as the Hotel Galvez, which opened in 1911. In the same year, the Galveston–Houston Electric Railway opened and became recognized as the fastest interurban rail system in the country. Galveston's port was also rebuilt quickly, and by 1912 had become the second-leading exporter in the nation, behind New York. Nevertheless, after the 1900 storm and another in 1915, many avoided investing in the island. Galveston had been