The Mexican government wanted to attract settlers to Texas. The Mexicans wanted to promote the growth of Texas so they offered land grants to interested people. One of the people who received a land grant was Moses Austin. When he died, his son, Stephen Austin, took over the land grant. About 300 Americans settled on the land granted to the Austin family.
The Mexican government placed conditions on receiving a land grant. The settlers had to agree to obey Mexican law, learn Spanish, become Catholic and become a citizen of Mexico. In return, they would get a land grant at reduced prices and pay little or no taxes for several years.
Eventually, more Americans came to Mexico to get land grants. Tensions grew between the Americans and the Mexicans, eventually leading to the Texan war for independence from Mexico. In 1836, the Lone Star Republic was created when Texas got its independence from Mexico.