Austin's Colony was the first significant settlement of American families in Texas, established in 1821 by Stephen F. Austin. He received a land grant from the Mexican government to bring settlers to the region. The colony attracted many families seeking new opportunities, leading to the growth of agriculture and trade in the area. The settlement was located along the Brazos River and became a model for future colonies in Texas. Austin's Colony played a crucial role in the early development of Texas, contributing to its eventual push for independence from Mexico in the 1830s.