Free State of Galveston a major port of entry for Texas and the West during the 19th century, and a new wave of immigration came through the port in the early 20th century. For a time it was known as "Little Ellis Island". In contrast to the heavily German immigration of the 19th century, the new arrivals in Galveston were Greeks, Italians, Russian Jews (part of the Galveston Movement), and others who came to settle in many parts of the country, including some who remained on the island itself. Of particular note are the Sicilian immigrants who formed a significant community in Galveston County,
Port of Galveston to export on the city's lack of an adequate water supply. However, when the city water project finished in the early 1890s, industrialization still did not occur. In reality, many companies were hesitant to invest in machinery on an island prone to floods. The nearby city of Houston was able to better attract industry and began positioning themselves as a viable alternative to Galveston. The port survived the Galveston Hurricane of 1900 relatively unscathed, but the railroad connecting the island to the mainland suffered significant damage. In response to the hurricane, city leaders dredged the ship channel to raise the