Palacios EDC

The City of Palacios, known as the City by the Sea and Shrimp Capital of Texas, is a small, charming town centrally located between the major ports of Houston and Corpus Christi. It is one of two incorporated cities in Matagorda County. While the city is relatively small (pop. 4,718) and rural, it is a coastal get-a-way drawing eco-tourists of all sorts and it also sits amid a hub of current industrial development. Palacios is quite well-known among tourists, drawing sport and recreational fishermen, boaters, birding enthusiasts, cyclists, history lovers and “Winter Texans”. The Port of Palacios is an active port for commercial shrimping and fishing, as well as recreational sail boats. The southern coastline has a well-groomed boardwalk, public beaches and 24-hour public piers. Main Street is lined with small storefronts, and is within a brief walk to both the eastern and southern beachfront.

Palacios is located within one hour’s drive of much industrial and retail development in the region. Tenaris, Argentine steel pipe manufacturer, built its North American Headquarters and manufacturing campus only 30 miles away just outside the Matagorda County seat of Bay City. Palacios’ major employer South Texas Project Nuclear Operating Company, which now employs about 1,200, is projecting 40% of its workforce will retire over the next 5 years causing an influx of new residents.

The Palacios Economic Development Corporation is a 4B sales tax corporation under the Development Corporation Act. Its function is to administer the expenditure of sales taxes for community and economic development programs in the City of Palacios. The PEDC offers grant programs for local businesses and other incentives for targeted growth.

Palacios is small-town America at its best. The people are friendly. The scenery is fantastic. The sunsets over the water are spectacular. There is no better place in Texas to visit, retire or settle a business. For more information about the opportunities available in Palacios, contact the Palacios Economic Development Corporation and Chamber of Commerce office at 361-972-2615 or email