Matagorda Bay is a large Gulf of Mexico bay on the Texas coast, lying in Calhoun and Matagorda counties and located approximately 80 miles northeast of Corpus Christi, 143 miles east-southeast of San Antonio, 108 miles south-southwest of Houston, and 167 miles south-southeast of Austin. It is one of seven major estuaries along the Gulf Coast of Tex…Matagorda Bay is a large Gulf of Mexico bay on the Texas coast, lying in Calhoun and Matagorda counties and located approximately 80 miles northeast of Corpus Christi, 143 miles east-southeast of San Antonio, 108 miles south-southwest of Houston, and 167 miles south-southeast of Austin. It is one of seven major estuaries along the Gulf Coast of Texas and serves as the mouth of numerous streams, most notably the Lavaca and Colorado Rivers. The Texas seaport of Port Lavaca is located on the system's northwestern extension of Lavaca Bay. The city of Palacios is found on northeastern extension of Tres Palacios Bay, and Port O'Connor is located on the southwestern tip of the main bay's shore. The ghost town of Indianola, which was a major port before it was destroyed by two hurricanes in the late 19th century, is also found on the bay.