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Anglo American settlers began arriving in the area, when Texas was still part of Mexico. They founded the village of Waterloo in 1837, along the banks of the Colorado River. According to local folk tales, Stephen F. Austin, the "father of Texas", negotiated a peace treaty with the local Indians at the site of the present day Treaty Oak after several settlers were killed in raids. According to local legend, Austin also negotiated a boundary treaty with the Indians that laid out the town's limits.
Replubic of Texas
Waterloo was chosen to become the capital of the new Republic of Texas in 1839 and was purchased by The Republic for that purpose...
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