Learning to live with the Colorado River Austin's fortunes have been tied with the
Colorado River for much of its history, no more so than in the 1890s. At the urging of local civic leader
Alexander Penn Wooldridge, the citizens of Austin voted overwhelmingly to put themselves deeply in debt to build a dam along the river to attract manufacturing. The hope was that cheap hydroelectricity would lure industrialists who would line the riverbanks with cotton mills. Austin would become "the
Lowell of the South," and the sleepy center of government and education would be transformed into a bustling industrial city. The town had reached its limits as a seat of politics and education, Wooldridge contended, yet its economy could not sustain its present size. Empowered by a new city charter in 1891 that more than tripled Austin's corporate area from 4 to 16 square miles, the city fathers implemented a plan to build a municipal water and electric system, construct a dam for power, and lease most of the hydroelectric power to manufacturers. By 1893 the sixty-foot-high
Austin Dam was completed just northwest of town. In 1895 dam-generated electricity began powering the four-year-old electric streetcar line and the city's new water and light systems. The dammed river formed a lake that became known as "Lake McDonald," for John McDonald, the mayor who had whipped up support for the project—attracted new residents and developers, while the waters of the lake itself drew those seeking respite from the Texas heat. Austin boomed in the mid-1890s, driven largely by land speculation.
Monroe M. Shipe established
Hyde Park, a classic
streetcar suburb north of downtown, and smaller developments sprang up around the city. Thirty-one new 165-foot-high
moonlight towers illuminated Austin at night. Civic pride ran strong during those years, which also saw the city blessed with the talents of sculptor
Elisabet Ney and writer
O. Henry. By today's standards, the dam was unremarkable – a wall of granite and limestone, 65 feet high and 1,100 feet long, with no catwalk or floodgates. But
Scientific American magazine was sufficiently impressed to feature the dam on its cover. However, structurally the dam was likely doomed from the start, as it was constructed on the spot where the
Balcones Fault passes under the river. Silt had filled nearly half the lake by February 1900, and the dam's design failed to accommodate the force that could be created by a large volume of water. However, the flow of the Colorado proved to be far more variable than the project's promoters had claimed, and the dam was never able to produce the kind of steady power needed to drive a bank of mills. The manufacturers never came, periodic power shortfalls disrupted city services, Lake McDonald silted up, and, on April 7, 1900, the Austin Dam was dealt its final blow after a spring storm. At 11:20 am, floodwaters crested at 11 feet atop the dam before it disintegrated, with two 250-foot sections – almost half the dam – breaking away. In all, the flood drowned 18 people and destroyed 100 houses in Austin, at a total estimated loss of $1.4 million, in 1900 dollars. After 1900, the people of Austin did what they could to recover from the disaster. Having gotten a taste of city-owned electric power, they refused to go back; they bought out the local private power company, which used steam-driven generators, and today's Austin Energy municipal utility is in a sense a legacy of the old Austin Dam. The city also tried to rebuild the dam itself, but a dispute with the contractor left the repairs unfinished in 1912, and another flood in 1915 damaged it further. The wrecked dam sat derelict, "a tombstone on the river," until the
Lower Colorado River Authority stepped in and, with federal money, rebuilt it as
Tom Miller Dam, completed in 1940. The remaining portions of the 1893 and 1912 dams were incorporated into the new structure, but are now hidden under new layers of concrete. By the time it was finished, however, Tom Miller Dam was already overshadowed by the much larger LCRA dams built upstream that formed the
Texas Highland Lakes. For the last seventy years,
Lake Travis (
Mansfield Dam) and
Lake Buchanan (
Buchanan Dam), have provided water, hydroelectric power, and flood control for Central Texas. pictured here with Texas governor
Joseph D. Sayers, did so to great fanfare Between 1880 and 1920 Austin's population grew threefold to 34,876, but the city slipped from fourth largest in the state to tenth largest. The state's surging industrial development, along with
Columbus Marion "Dad" Joiner striking oil east of Austin in
Kilgore, spawning at the worlds largest oil field, the East
Texas oil boom, helped propel Texas’s booming oil business, passed Austin by. The capital city began boosting itself as a residential city, but the heavy municipal indebtedness incurred in building the dam resulted in the neglect of city services. On December 20, 1886, the
Driskill Hotel opened at
6th and Brazos, giving Austin its first premier hotel. The hotel would close and reopen many times in subsequent years. In 1905 Austin had few sanitary sewers, virtually no public parks or playgrounds, and only one paved street. Three years later Austin voters overturned the
alderman form of government, by which the city had been governed since 1839, and replaced it with
commission government. Wooldridge headed the reform group voted into office in 1909 and served a decade as mayor, during which the city made steady if modest progress toward improving residential life. The
Littefield and
Scarborough buildings at 6th and Congress downtown also opened that year, representing the city's first skyscrapers. In 1910, the city opened the concrete
Congress Avenue Bridge across the Colorado River and, by the next year, had extended the streetcar line to South Austin along
South Congress Avenue. The fostered development south of the river for the first time, allowing for development of
Travis Heights in 1913. In 1918 the city acquired
Barton Springs, a spring-fed pool that became the symbol of the residential city. Upon Wooldridge's retirement in 1919 the flaws of commission government, hidden by his leadership, became apparent as city services again deteriorated. At the urging of the Chamber of Commerce, Austinites voted in 1924 to adopt
council-manager government, which went into effect in 1926 and remains in effect today. Progressive ideas like city planning and beautification became official city policy. A 1928 city plan, the first since 1839, called upon Austin to develop its strengths as a residential, cultural, and educational center. A $4,250,000 bond issue, Austin's largest to date, provided funds for streets, sewers, parks, the city hospital, the first permanent public library building, and the first municipal airport, which opened in 1930. A recreation department was established, and within a decade it offered Austinites a profusion of recreational programs, parks, and pools.
Race and the 1928 City Plan |link=File:A_City_Plan_for_Austin,_Texas.pdf%3Fpage=1 By the early years of the 20th century, African-Americans occupied settlements in various parts of the city of Austin. By and large, these residential communities had churches at their core. Some had black-run businesses and schools for African-American youth. Though surrounded by Anglo neighborhoods, these island enclaves functioned as fairly autonomous residential neighborhoods often organized around family ties, common religious practices, and connection to pre-emancipation slave-status relationships with common slave holders/land owners. Though some date back to slavery, by the 1920s these communities were located across the city and include Kincheonville (1865),
Wheatville (1867),
Clarksville (1871), Masonville, St. Johns, Pleasant Hill, and other settlements. While residences of blacks had been widely scattered all across the city in 1880, by 1930 they were heavily concentrated in East Austin, a process encouraged by the
1928 Austin city plan, which recommended that East Austin be designated a "Negro district." City officials implemented the plan successfully, and most blacks who had been living in the western half of the city were "relocated" back to the former plantation lands, on the other side of East Avenue (now
Interstate 35). Municipal services like schools, sewers, and parks were made available to blacks in East Austin only. At mid-century Austin was still segregated in most respects—housing, restaurants, hotels, parks, hospitals, schools, public transportation—but African Americans had long fostered their own institutions, which included by the late 1940s some 150 small businesses, more than thirty churches, and two colleges, Tillotson College and Samuel Huston College. Between 1880 and 1940 the number of black residents grew from 3,587 to 14,861, but their proportion of the overall population declined from 33% to 17%. Austin's Hispanic residents, who in 1900 numbered about 335 and composed just 1.5% of the population, rose to 11% by 1940, when they numbered 9,693. By the 1940s most
Mexican-Americans lived in the rapidly expanding East Austin barrio south of East Eleventh Street, where increasing numbers owned homes. Hispanic-owned business were dominated by a thriving food industry. Though Mexican Americans encountered widespread discrimination—in employment, housing, education, city services, and other areas—it was by no means practiced as rigidly as it was toward African-Americans. Between the 1950s and 1980s ethnic relations in Austin were transformed. First came a sustained attack on segregation. Local black leaders and political-action groups waged campaigns to desegregate city schools and services. In 1956 the
University of Texas became the first major university in the South to admit blacks as undergraduates. In the early 1960s students staged demonstrations against segregated lunch counters, restaurants, and movie theaters. Gradually the barriers receded, a process accelerated when the United States Civil Rights Act of 1964 outlawed racial discrimination in public accommodations. Nevertheless, discrimination persisted in areas like employment and housing. Shut out of the town's political leadership since the 1880s, when two blacks had served on the city council, African-Americans regained a foothold by winning a school-board seat in 1968 and a city-council seat in 1971. This political breakthrough was matched by Hispanics, whose numbers had reached 39,399 by 1970, or 16 percent of the population. Mexican-Americans won their first seats on the Austin school board in 1972 and the city council in 1975.
Growth during the Great Depression During the early and mid-1930s, Austin experienced the harsh effects of the
Great Depression. Nevertheless, the town fared comparatively well, sustained by its twin foundations of government and education and by the political skills of Mayor
Tom Miller, who took office in 1933, and United States Congressman
Lyndon Baines Johnson, who won election to the U.S.
House of Representatives in 1937. Its population grew at a faster pace during the 1930s than in any other decade during the 20th century, increasing 66 percent from 53,120 to 87,930. By 1936 the
Public Works Administration had provided Austin with more funding for municipal construction projects than any other Texas city during the same period. UT nearly doubled its enrollment during the decade and undertook a massive construction program. In addition, the
Robert Mueller Municipal Airport opened its doors for commercial air traffic in 1930. Over three decades after the original Austin Dam collapsed, Governor
Miriam A. "Ma" Ferguson signed the bill that created the
Lower Colorado River Authority (LCRA). Modeled after the
Tennessee Valley Authority, the LCRA is a nonprofit public utility involved in managing the resources along the
Highland Lakes and Colorado River. The old Austin Dam, partially rebuilt under Mayor Wooldridge but never finished due to damage from flooding in 1915, was finally completed in 1940 and renamed
Tom Miller Dam.
Lake Austin stretched twenty-one miles behind it. Just upriver the much larger
Mansfield Dam was completed in 1941 to impound
Lake Travis. The two dams, in conjunction with other dams in the
Lower Colorado River Authority system, brought great benefits to Austin: cheap hydroelectric power, the end of flooding that in 1935 and on earlier occasions had ravaged the town, and a plentiful supply of water without which the city's later growth would have been unlikely. In 1942 Austin gained the economic benefit of Del Valle Army Air Base, later
Bergstrom Air Force Base, which remained in operation until 1993.
Post-War growth and its consequences From 1940 to 1990 Austin's population grew at an average rate of 40 percent per decade, from 87,930 to 472,020. By 2000 the population was 656,562. The city's corporate area, which between 1891 and 1940 had about doubled to 30.85 square miles, grew more than sevenfold to 225.40 square miles by 1990. During the 1950s and 1960s much of Austin's growth reflected the rapid expansion of its traditional strengths—education and government. During the 1960s alone the number of students attending the University of Texas at Austin doubled, reaching 39,000 by 1970. Government employees in Travis County tripled between 1950 and 1970 to 47,300. University of Texas buildings multiplied, with the
Lyndon Baines Johnson Library opening in 1971. A complex of state office buildings was constructed north of the Capitol. Propelling Austin's growth by the 1970s was its emergence as a center for high technology. This development, fostered by the Chamber of Commerce since the 1950s as a way to expand the city's narrow economic base and fueled by proliferating research programs at the University of Texas, accelerated when
IBM located in Austin in 1967, followed by
Texas Instruments in 1969 and
Motorola in 1974. Two major research consortia of high-technology companies followed during the 1980s,
Microelectronics and Computer Technology Corporation and
Sematech. By the early 1990s, the
Austin–Round Rock–San Marcos Metropolitan Statistical Area had about 400 high-technology manufacturers. While high-technology industries located on Austin's periphery, its central area sprouted multi-storied office buildings and hotels during the 1970s and 1980s, venues for the burgeoning music industry, and, in 1992, a new convention center. On August 1, 1966, UT student and former
Marine Charles Whitman killed both his wife and his mother before ascending the
UT Tower and opening fire with a high-powered sniper rifle and several other firearms. Whitman killed or fatally wounded 14 more people over the next 90 minutes before being shot dead by police.
1970 to 1989 During the 1970s and 1980s, the city experienced a tremendous boom in development that temporarily halted with the
Savings and Loan crisis in the late 1980s. The growth led to an ongoing series of fierce political battles that pitted preservationists against developers. In particular the preservation of Barton Springs, and by extension the
Edwards Aquifer, became an issue that defined the themes of the larger battles. Austin's rapid growth generated strong resistance by the 1970s. Angered by proliferating apartment complexes and traffic flow, neighborhood groups mobilized to protect the integrity of their residential areas. By 1983 there were more than 150 such groups. Environmentalists organized a powerful movement to protect streams, lakes, watersheds, and wooded hills from environmental degradation, resulting in the passage of a series of environmental-protection ordinances during the 1970s and 1980s. A program was inaugurated in 1971 to beautify the shores of Town Lake (now named
Lady Bird Lake), a downtown lake impounded in 1960 behind Longhorn Crossing Dam. Historic preservationists fought the destruction of Austin's architectural heritage by rescuing and restoring historic buildings. City election campaigns during the 1970s and 1980s frequently featured struggles over the management of growth, with neighborhood groups and environmentalists on one side and business and development interests on the other. As Austin became known as a location for creative individuals, corporate retail branches also moved into town and displaced many "home-grown" businesses. To many longtime Austinites, this loss of landmark retail establishments left a void in the city's culture. In the 1970s, Austin became a refuge for a group of
country and western musicians and songwriters seeking to escape the music industry's corporate domination of
Nashville. The best-known artist in this group was
Willie Nelson, who became an icon for what became the city's "alternate music industry"; another was
Stevie Ray Vaughan. In 1975,
Austin City Limits premiered on
PBS, showcasing Austin's burgeoning music scene to the country. The
Armadillo World Headquarters gained a national reputation during the 1970s as a venue for these anti-establishment musicians as well as mainstream acts. In the following years, Austin gained a reputation as a place where struggling musicians could launch their careers in informal live venues in front of receptive audiences. This ultimately led to the city's official motto, "The Live Music Capital of the World".
1990 to present In the 1990s, the boom resumed with the influx and growth of a large technology industry. Initially, the technology industry was centered around larger, established companies such as
IBM, but in the late 1990s, Austin gained the additional reputation of being a center of the
dot-com boom and subsequent
dot-com bust. Austin is also known for
game development, filmmaking, and
popular music. On May 23, 1999,
Austin-Bergstrom International Airport served its first passengers, replacing
Robert Mueller Municipal Airport. In 2000, Austin became the center of an intense media focus as the headquarters of presidential candidate and Texas Governor
George W. Bush. The headquarters of his main opponent,
Al Gore, were in
Nashville, thus re-creating the old country music rivalry between the two cities. Also in the 2000 election, Austinites narrowly rejected a
light rail proposal put forward by
Capital Metro. In 2004, however, they approved a
commuter rail service from
Leander to downtown along existing rail lines.
Capital MetroRail service finally began service in 2010. In 2004, the
Frost Bank Tower opened in the downtown business district along
Congress Avenue. At , it was the tallest building in Austin by a wide margin, and was also the first high rise to be built after September 11, 2001. Several other high-rise downtown projects, most residential or mixed-use, were underway in the downtown area at the time, dramatically changing the appearance of downtown Austin, and placing a new emphasis on downtown living and development. In 2006, the first sections of Austin's first
toll road network opened. The toll roads were extolled as a solution to underfunded highway projects, but also decried by opposition groups who felt the tolls amounted in some cases to a double tax. Now in 2025 there are 10 toll roads 1 thru 4 are the most expensive tolls in Austin SH 130 toad roll section 1-4 are which is one of the most expensive toll roads in the USA. In March 2018, a
series of four explosions centered in Austin, killed two civilians and injuring another five. In 2019, the city adopted the Austin Strategic Mobility Plan (ASMP) as its long-term transportation strategy. The plan focuses on improving mobility, reducing traffic congestion and decreasing the city's reliance on automobiles. Key initiatives include expanding pedestrian and
bicycle infrastructure, enhancing public transit services and promoting road safety with the goal of eliminating traffic fatalities. The ASMP also aims to support environmental sustainability and address the transportation challenges associated with Austin's growing population. Presently, In 2025 Austin has a population of 989,252. Austin is currently growing at a rate of 0.48% annually and its population has increased by 2.43% since the most recent census, which recorded a population of 965,827 in 2022. Austin continues to rise in popularity and experience rapid growth. Young people in particular have flooded the city, drawn in part by its relatively strong economy, its reputation of
liberal politics and
alternative culture in
Middle America, and its relatively low housing costs compared to the coastal regions of the country. Austin has also become a hub for a growing
music scene, and has even adopted a motto of being the "Live Music Capital of the World." The sudden growth has brought up several issues for the city, including
urban sprawl, as well as balancing the need for new infrastructure with environmental protection. Most recently, the city has pushed for
smart growth, mostly in downtown and the surrounding neighborhoods, spurring the development of new condominiums in the area and altering the city's skyline. While Smart Growth has been successful in revitalizing downtown and the surrounding central city neighborhoods housing development has not kept pace with demand driven by rapid and sustained employment growth which has resulted in higher housing costs. Austin continues to maintain its liberal political landscape with its mayor
Kirk Watson. He won his first term in a 1997 election and was reelected to office in 2022 with 50.4% of the vote. As of 2025, Watson is serving his third term as mayor after serving in the
Texas Senate. He is a member of the
Democratic Party and his main areas of focus pertain to cost of living, homelessness, and transportation through the city. ==See also==