Horseshoe Bay is located off Farm Road 2147 and on Lake Lyndon B. Johnson in the southeastern corner of Llano County and southwestern corner of Burnet County about twenty-four miles southeast of Llano and six miles southwest of Marble Falls. The land was a ranch when cousins Wayne and Norman Hurd began development of a lakeshore resort area about 1972. Wayne Hurd reportedly named the community after finding a horseshoe in the lakebed during a period when the lake level had dropped. During the next two decades the community grew to serve primarily retirees and resort-goers. Many of the homes served as second homes. Horseshoe Bay had its own municipal utility district which provided services. In 1990 the population was 1,546, and a post office opened in the mid-1990s. By 2000 the population had grown to 3,337 with thirty-seven listed businesses. Residents incorporated in 2005 and elected a mayor and city council. The retirement and resort community offers many recreational amenities including three eighteen-hole golf courses, a hotel, a marina, and a yacht club. Horseshoe Bay also has two banks, two churches, a police department, and a fire department.