During the 1830s, pioneers began settling along the Colorado River in what is now central Austin, while Spanish forts were established in nearby Bastrop and San Marcos. Following Mexico’s independence, Central Texas saw the establishment of new settlements, laying the groundwork for future development.

In 1835–1836, Texans won independence from Mexico, creating the Republic of Texas. By 1839, the Texas Congress sought a new capital to replace Houston. Vice President Mirabeau B. Lamar, having visited the area during a buffalo-hunting expedition, recommended the north bank of the Colorado River for its hills, waterways, and favorable surroundings. The site was briefly called “Waterloo” before being renamed Austin in honor of Stephen F. Austin, the “Father of Texas.”

Edwin Waller was commissioned to survey the village and draft a city plan. The Waller Plan laid out 640 acres along the Colorado River into a 14-block grid, bisected by a broad north–south avenue, Congress Avenue, leading to Capital Square. A temporary one-story capitol was erected, and on August 1, 1839, the first auction of city lots was held, forming the basis of downtown Austin.

The early 1840s saw conflicts between the Texas Rangers and Comanche tribes, including the Council House Fight and the Battle of Plum Creek, pushing the Comanches westward and clearing the way for expansion. Travis County was established in 1840, with surrounding counties forming over the next two decades. Over the 19th century, Austin grew steadily, becoming a hub for government, education, and trade with the construction of the Texas State Capitol and the University of Texas at Austin.