The town was founded in 1844 by Prince Carl of Solms-Braunfels who called the place in honour of himself Carlshafen (meaning "Carl's Harbour"). It served as the main landing site for thousands of German immigrants entering Texas.
It was renamed Indianola in 1849 and became the second-largest port in the state after Galveston. However, it was destroyed by two massive hurricanes in 1875 and 1886 prompting the surviving residents to abandon the site permanently.
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