Oil was discovered on Tabbs Bay in 1905, and the town of Goose Creek grew among the oil derricks to include about fifty buildings and another 100 tents for oil field workers. After a series of well blowouts, gas releases, and fires in 1916, many workers and their families moved just north of the oil field onto land owned by the heirs of David Wiggins. In 1916, the new town of Goose Creek was established north of the Wiggins land. The original settlement on Tabbs Bay became known as Old Town, and the Wiggins heirs' land became known as Middle Town. New Town incorporated as the city of Goose Creek in January 1919. Fearing that Middle Town would be annexed by Goose Creek, a group of residents led by Fred Pelly presented a petition to the Harris County Commissioners Court to incorporate the land south of Goose Creek as the City of Pelly. An election was held, and the City of Pelly incorporated on December 29, 1919. Fred Pelly was the city's first mayor, serving two terms and later a partial third term. From an estimated 7,500 people in 1924, Pelly's transient population fell with declining oil production; however, the city continued to thrive with permanent homes, schools, churches, a business district, and several civic organizations. Despite several consolidation attempts over the years, Goose Creek and Pelly and unincorporated Baytown remained separate until Pelly annexed Baytown in 1945. On March 7, 1947, voters in Goose Creek and Pelly approved Pelly's annexation of Goose Creek, making Pelly the second largest city in Harris County. On January 24, 1948, a new city charter was adopted, and voters chose the name Baytown. The Pelly City Hall continued in use for many years as the Baytown City Hall.