The Lake Creek Settlement (ca. 1830s through the 1840s) was a settlement in Stephen F. Austin's Second Colony located in Mexican Texas and later the Republic of Texas. The Lake Creek Settlement was located between the West Fork of the San Jacinto River (Texas) and the stream known as Lake Creek in what is today western Montgomery County, Texas. In July 1837, the town of Montgomery, Texas was founded in the middle of the Lake Creek Settlement.
In 1821 the Mexican War for Independence severed the control that Spain had exercised on its North American territories, and the new country of Mexico was formed from much of the lands that had comprised New Spain, including Spanish Texas. Because it was sparsely populated, Texas was combined with Coahuila to create a new state, Coahuila y Tejas.
The new Mexican government was bankrupt and had little money to devote to the military. Settlers were empowered to create their own militias to help control hostile Indian tribes. Mexican Texas faced raids from both the Apache and Comanche tribes, and with little military support the few settlers in the region needed help. In the hopes that an influx of settlers could control the Indian raids, the government liberalized its immigration policies for the region, and settlers from the United States were permitted in the colonies for the first time.
Stephen F. Austin quickly became the first Empresario to successfully establish a colony in Texas. The 1823 Imperial Colonization Law of Mexico allowed an empresario to receive a land grant within the Mexican province of Texas. The empresario and a commissioner appointed by the governor would be authorized to distribute land to settlers and issue them titles in the name of the Mexican government. Only one contract was ultimately approved under this legislation, the first contract granted to Stephen F. Austin. Between 1824 and 1828, Austin granted 297 titles under this contract. Each head of household received a minimum of 177 acres or 4,428 acres depending on whether they intended to farm or raise livestock. The grant could be increased for large families or those wishing to establish a new industry, but the lands would be forfeited if they were not cultivated within two years. The settlers who received their titles under Austin's first contract were known as the Old Three Hundred.