Gulf Coast
2010 Census - 4,718
2000 Census - 5,153
Palacios, Texas
Palacios Texas History:
In 1901, the Palacios townsite was part of a bull pasture offered for sale by the estate of Abel H. Pierce. The Texas Rice Development Company purchased the land and subdivided it into 160 acre tracts. The mile square tract on Tres Palacios Bay at Hamilton Point was sold by the Palacios City Townsite Company, a subsidiary of the development company. The town of Trespalacios was platted in 1902. When the town applied for a post office the town’s name was changed to Palacios because a nearby post office was named Tres Palacios. In 1903 the train began excursions for settlers, and the townsite company built the Hotel Palacios. In 1904 a pavilion with bath houses was constructed near the hotel on a T-head pier over the water at the south end of town. The pavilion was used for swimming, dancing, fishing, picnicking, dominoes, and other entertainment. Fish and oyster businesses opened; fishing remained significant to the local economy into the 1990s. The townsite company gave 13 acres on Hamilton Point to the Baptists on condition that the Baptist Young People’s Union Encampment was held at Palacios; the first encampment was held there in 1906. Five women established the library in 1907; it was officially established in 1910. In 1926 Camp Palacios was established as a training camp for the National Guard; in 1930 the camp was renamed Camp Hulen after John A. Hulen, commander of the Thirty-Sixth Infantry Division. The South Texas Nuclear Project was established in the 1970s. In 1988 the school district began the Palacios Marine Education Center. Today Palacios is the second largest town in Matagorda County. It has five RV parks, three marinas, fishing piers and a historical hotel. Palacios is bordered on the south and east by Tres Palacios Bay which opens into Matagorda Bay and the Gulf of Mexico. Sailing and fishing are popular activities. Palacios is located Midway between Galveston and Corpus Christi on SH 35, midway between Galveston and Corpus Christi, 29 miles northeast of Port Lavaca, 22 miles northeast of Olivia and Port Alto, 17 miles south of Elmaton, 12 miles south of Blessing, 26 miles southwest of Collegeport, 26 miles southwest of Wadsworth, 29 miles southwest of Bay City, and 34 miles west of Matagorda, Texas. 
Port of Palacios on Matagorda Bay:
The Port of Palacios is located at the mouth of the 4 mile long Palacios Boat Channel on Tres Palacios Bay, an inlet of the larger Matagorda Bay. The Channel connects the port with the Gulf Intracoastal Waterway; the 2007 dredging of the channel restored its width to 125 Feet and depth to 12 feet. The Port features two large commercial turning basins, two recreational marinas (South Bay and Turning Basin #3), and three ship and boat repair facilities. Other Port properties include several retail and wholesale bait and fresh catch businesses. Tugboat, barge, and recreational vessels are manufactured on the Port. Port Palacios is home port to the second largest, if not the largest, shrimping fleet on the Texas Gulf Coast. The Texas State Marine Education Center is located on 60 acres of the Matagorda County Navigation District #1 property. The center is housed in the former headquarters of General John A. Hulen. The Palacios Independent School District provides the staff for the Marine Center’s extensive marine education program. The Center hosts over 8,000 area students and visitors. (361) 972-5556. The office is located at 1602 Main Street. Email  Boat Channel Webcam 
Palacios Seawall, 1935:
The 3 mile seawall offers 2 miles of lighted sidewalk. 3 public boat ramps, and many lighted jetties and piers for fishing. Swimmers enjoy the beaches. A man made beach is located at Railroad Park located along the west end of the south bay seawall. This is an ideal spot for launching small boats. The historic Luther Hotel is located on the seafront.
Palacios-Bay City Shuttle:
The shuttle leaves Palacios for Bay City on Tuesdays and Thursdays at 7:30am; it returns at 4:30pm. The trip to Bay City costs $150 each way. Rides within the City of Palacios cost $0.50; children under 12 ride free. Riders must have exact change. (979) 245-6800. Schedule