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
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