That describes pretty much what happened to Galveston after the 1900 Hurricane, had it not been for that storm, Galveston may very well have been the big Texas city on the Gulf Coast, instead of Houston.
By the time the 1900 census count was taken, however, San Antonio, with 53,321 residents, Houston, with 44,633, and Dallas, with 42,638, had left Galveston, with 37,789, in the population dust. The transcontinental railroad lines and growing manufacturing sectors of the three larger Texas cities by-passed hurricane-vulnerable Galveston.
The citizens of Galveston did rebuild in the wake of this great hurricane, and in doing so, have been recognized in achieving a remarkable feat of civil engineering: the grade of the entire city was raised and a seawall was built to protect it. Within a decade, 500 city blocks had been raised by 0.3-3.3 m (1-11 ft) with sand dredged from Galveston’s ship channel. During the same period, a seawall spanning nearly 50 blocks was constructed, providing protection for the heart of Galveston. The seawall was tested in 1915 when a Category 3 hurricane battered the Texas coast with 193.2 km/h (120 mph) winds and a 4.9 m (16 ft) storm surge. Although the city sustained serious flooding and the wall was damaged, a repeat of the 1900 devastation was avoided.
Although Galveston was rebuilt, it never regained its previously prominent place in Texas’ history, mainly due to the emergence of Houston, several miles inland (connected to the Gulf by a canal).
Today Galveston's economy is driven by three paramount areas: tourism, attracting visitors to its beach and its historic districts; the port, which now ranks 7th in shipments among the 13 major Texas ports; and The University of Texas Medical Branch, which has been an important part of the city since 1891.