Horseshoe Bay facts and information: Horseshoe Bay was first developed in 1971 by cousins Wayne and Norman Hurd. During the next two decades the community grew to serve primarily retirees and resort-goers. Many of the homes served as second homes. Horseshoe Bay had its own municipal utility district which provided services. By 2000 the population had grown to 3,337 with thirty-seven listed businesses. Residents incorporated in 2005 and elected a mayor and city council. The retirement and resort community offers many recreational amenities including three eighteen-hole golf courses, a hotel, a marina, and a yacht club. Horseshoe Bay also has two banks, two churches, a police department, and a fire department. Horseshoe Bay is considered a world-class destination here in the Texas Hill Country. Three award-winning golf courses designed by Robert Trent Jones, Sr. makes Horseshoe Bay one of the best golf resorts in the Southwest. Horseshoe Bay is a city in Llano and Burnet counties in the U.S. state of Texas. Situated on Lake Lyndon B. Johnson and the south branch of the Colorado River, it is known in the region for its golf courses, hotel and resort, and water sports. The 2016 census population estimate for Horseshoe Bay was 3,264.