Iowa Colony, along with its cousins Ohio Colony and Illinois Colony, was a neighborhood settlement located northwest of Palacios, which probably provided it most services, in extreme western Matagorda County. The community was established during the railroad-boosted wave of settlement in the county during the early 1900s and was named after the home state of its inhabitants. County highway maps for the 1930s show a number of widely scattered farm units in the area northwest of Palacios where these settlements were said to have stood. With the advent of improved transportation and school consolidation these communities gradually disappeared and are not labeled on 1952 maps.
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