In 1909, the Calhoun County Cattle Company laid out a townsite on land that had been part of a large ranch and settlement known as Alligator Head and named it Port O'Connor for Thomas O'Connor of Victoria, from whom the company had purchased the ranch land, beginning its development into a coastal resort and recreational area. Surrounded on three sides by bay waters, Port O'Connor attracted many visitors, particularly after the St. Louis, Brownsville and Mexico Railway built an excursion line there in 1910. Hotels, service industries, and other businesses formed to accommodate residents and visitors. Port O'Connor suffered heavy damage during the Gulf Storm of 1919 but rebuilt. In 1927, high demand for shrimp brought many shrimpers to the area, helping spur development after the storm. In 1939, the Gulf Intracoastal Waterway linked Port O'Connor to Corpus Christi and New Orleans via the inland water channel, further improving accessibility and opportunities for economic growth. Port O'Connor suffered a severe setback in 1961, when Hurricane Carla destroyed 90 percent of the town and leveled the five-block central business district. Residents rebuilt their town, and Port O'Connor's proximity to the Matagorda Island Air Field helped reestablish it as a viable community. During the latter half of the 20th century, Port O'Connor became well known for its fishing, hunting, and water sport opportunities, and by the year 2000 it had 2000 permanent residents.