The Lake Creek Settlement (ca. 1830s through the 1840s) was a settlement in Stephen F. Austin's Second Colony, located in Mexican Texas, and later the Republic of Texas after it gained independence in 1836. The Lake Creek Settlement was located between the West Fork of the San Jacinto River (Texas) and the stream known as Lake Creek. It was the first Anglo-American settlement in what is today western Montgomery County, Texas.

In July 1837, the town of Montgomery, Texas was founded in the middle of the Lake Creek Settlement, at the site of W. W. Shepperd's store. It was located near the West Fork of the San Jacinto River, which had keel boat navigation to that point.

Lake Creek Settlement

Background

In 1821, Mexico gained independence from Spain. It formed a new nation from much of the lands that had comprised New Spain, including Spanish Texas. Because this area was sparsely populated, the Republic combined Texas with Coahuila to create a new state, Coahuila y Tejas.

Lake Creek Settlement

The war had bankrupted the new Mexican government and it had little money to devote to the military. It authorized settlers to raise militias for their defense against hostile Indian tribes, who were seeking to expel the European Americans from their territory. Mexican Texas was raided by the Apache and Comanche, who were powerful in this area. Believing that an increase in settlers in the new state could help to deter the Indian raids, the Mexican government liberalized its immigration policies for the region. For the first time, it allowed settlers from the United States to Texas y Coahuila.

Lake Creek Settlement

Anglo-American Stephen F. Austin became the first Empresario to successfully establish a colony in Texas. Under the 1823 Imperial Colonization Law of Mexico, an empresario could receive a land grant within the Mexican province of Texas. Together with a commissioner appointed by the governor, he was authorized to distribute land to settlers and issue them titles in the name of the Mexican government. Only one contract was approved under this legislation, the first contract granted to Stephen F. Austin.

Between 1824 and 1828, Austin granted 297 titles under this contract. Each head of household received a minimum of 177 acres or 4,428 acres, depending on whether they intended to farm or raise livestock. The grant could be increased for large families or those wishing to establish a new industry, but required the lands to be cultivated within two years. The settlers who received titles under Austin's first contract later became known as the Old Three Hundred. As many of these settlers came from the South, they brought enslaved African Americans with them to work and clear the land. As they developed cotton plantations in this area, they were dependent on the enslaved workers for it to be profitable.

The 1824 General Colonization Law made all heads of household who were citizens of or immigrants to Mexico eligible to claim land. The law did not differentiate among races or social status, but immigrants were required to be Roman Catholic, and foreigners were expected to learn Spanish. Persons who had been granted occupancy rights were allowed to claim the land patent for dwellings. Settlers were required to own property or have a craft or useful profession. All persons wishing to live in Texas were expected to report to the nearest Mexican authority for permission to settle.

The state government in Saltillo approved grants for land. They were soon besieged by foreign speculators wanting to bring colonists into the state. Coahuila y Tejas implemented the federal law in 1825. At this time, about 3500 people lived in Texas, mostly congregated at San Antonio and La Bahia.

Under the new law, people who did not already possess property in Texas could claim one square league of irrigable land, with an additional league available to those who owned cattle. Soldiers were given first choice of land, followed by Mexican citizens, and immigrants. Empresarios and individuals with large families were exempt from the limit. Those who had owned land under Spanish control were allowed to retain their property as long as they had not fought with the Spanish during the Mexican War of Independence. Immigrants were subject to the same policies as Mexican citizens. Indians who migrated to Texas after Mexican independence and were not native to the area were to be treated as immigrants. Enslaved African Americans were not recognized as citizens or immigrants.