Our Story, By the Bay
Explore the people, places, and stories that shaped Palacios.
A Town with a Story to Tell
From the water to the waterfront, Palacios has always been a place of people, possibility, and community.
1901
Land from the estate of Abel “Shanghai” Pierce was purchased for development, setting the stage for Palacios.
1902
W. C. Moore and other investors helped establish the town at Hamilton Point. Originally called Trespalacios, its name was later shortened to Palacios.
1903
Railroad service, a post office, and the hotel later known as the Luther Hotel helped attract residents and visitors. Duncan Ruthven and A. R. Hillyer opened a seafood packing company.
1904
The first waterfront pavilion opened along South Bay, becoming a gathering place for swimming, dancing, fishing, and skating.
1906
The Texas Baptist Encampment began, bringing families from across Texas and creating a lasting community tradition.
1909
Palacios incorporated, with Duncan Ruthven serving as its first mayor.
Photo credit: Find a Grave
1910
The Palacios Chamber of Commerce formed to support the growing business community.
1920s
Commercial shrimping became a major industry. Ted Bates Sr. helped develop local shrimping practices, while Carlton Crawford expanded shrimp canning at Crawford Packing Company.
Photo credit: TXGenWeb / USGenWeb
1925–1926
Camp Palacios, later named Camp Hulen, was established for the Texas National Guard’s 36th Infantry Division.
1934–1935
A hurricane destroyed the original waterfront pavilion. Its replacement, the Round House, opened in late 1935 and became known for dances and visiting big bands.
Photo credit: The Luther Hotel Facebook page
1940
Matagorda County Navigation District No. 1 was created. Harbor improvements and the first turning basin supported the expanding shrimp fleet.
1940–1945
Camp Hulen became a major Army antiaircraft training center during World War II, housing nearly 15,000 personnel at its peak. It also held German prisoners of war.
Photo credit: Beachside
August 30, 1942
A hurricane struck Matagorda Bay, damaging the waterfront and Crawford Packing Company, which rebuilt afterward.
August 26–28, 1945
Another powerful hurricane struck the Matagorda area, causing coastal damage and erosion. Nearby Collegeport recorded a 135 mph gust.
1946
Camp Hulen was declared surplus and returned to the Texas National Guard. The departure of military personnel brought an economic slowdown.
September 11, 1961
Hurricane Carla, a Category 4 storm, devastated Palacios. Homes, businesses, boats, docks, the Round House, and Crawford’s canning plant were destroyed or severely damaged.
Photo credit: National Weather Service
1967
Hurricane Beulah brought another hardship for residents and shrimpers during the difficult years following Carla.
Late 1970s–1980s
Vietnamese refugee families settled in Palacios. Many entered the shrimping industry and became an enduring part of the town’s economy and cultural identity.
Photo credit: Port of Palacios
1986
The Palacios Area Historical Association purchased the historic R. J. Hill Building, which became home to the City by the Sea Museum.
1991
A new open-air waterfront pavilion restored a community gathering place lost during Carla.
Photo credit: TXGenWeb / USGenWeb
1995–1997
The discovery and excavation of La Salle’s ship La Belle brought international attention to Matagorda Bay. Palacios served as the excavation headquarters.
2009
Palacios celebrated 100 years since incorporation.
August 2017
Hurricane Harvey damaged Palacios and surrounding communities. Housing recovery and rebuilding continued for years.
September 2021
Hurricane Nicholas made landfall near Sargent. Palacios recorded a 55 mph wind gust.
Photo credit: Texas Public Radio
July 8, 2024
Hurricane Beryl made landfall near Matagorda. Palacios Municipal Airport recorded an 89 mph gust.
2026
Waterfront work includes boat-ramp and kayak-launch improvements, shoreline repairs, and beach-restoration planning.
La Belle: A Story Beneath the Bay
1995–1997 | The discovery and excavation of La Salle’s ship La Belle brought international attention to Matagorda Bay. Palacios served as the excavation headquarters.
There’s More to Discover
In 1986, the Palacios Area Historical Association purchased the historic R. J. Hill Building, which became home to the City by the Sea Museum.
Visit the City by the Sea Museum
© Palacios Chamber of Commerce