Horseshoe Bay is a city in Llano and Burnet counties in the U.S. state of Texas. Situated on Lake Lyndon B. Johnson and the south branch of the Colorado River, it is known in the region for its drag boat racing and other water sports. Prior to its incorporation in September 2005, it was a census-designated place (CDP). The CDP population was 3,337 at the 2000 census. The 2010 census put the population at 3,418. The Llano County portion of Horseshoe Bay is served by the Llano Independent School District. The Burnet County portion is served by the Marble Falls Independent School District.
Marble Falls was founded by Adam Rankin Johnson in 1887, a former Indian fighter and Confederate general, known as "Stovepipe" Johnson for his Civil War escapades, which included duping the Union army in Newburgh, Indiana, with fake "cannons," constructed from stovepipes and wagon wheels. Johnson had viewed the natural Marble Falls during his pre-war days as a Burnet County surveyor, and had dreamed of building an industrial city, powered by the tumbling Colorado River, not to be confused with the river of the same name in Colorado and Arizona. Despite a "friendly fire" incident which blinded him near the end of the Civil War, General Johnson followed through with his dream, facilitating the construction of a railroad to nearby Granite Mountain in 1884, then (with ten partners, including one son, one nephew and two sons-in-law) platting the townsite and selling lots, beginning July 12, 1887. Johnson built a fine home, a college (soon to be home of the "Falls on the Colorado Museum") and a large factory near the falls. The town grew to a population of 1,800 within ten years. Marble Falls made history in 1917 by electing Ophelia Crosby "Birdie" Harwood as the first woman mayor in Texas, three years before women were allowed to vote. When the Max Starcke Dam was completed in 1951, the marble falls which had given the town its name were submerged under the new Lake Marble Falls. While the town's economy struggled through the drought of the 1950s, a new economy based on tourism and retirement began to grow in the 1970s. During the last thirty years, Marble Falls has grown into the retail and entertainment center for the Highland Lakes area, and continues to attract tourists, retirees and new businesses
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