Early Settlers For several hundred years before the arrival of European settlers, the area around present-day Austin was inhabited by a mix of Tonkawa, Comanche, and Lipan Apache Indians , who fished and hunted along the streams, including present-day Barton Springs. The first documented permanent settlement in present-day Austin occurred in 1835. Anglo-American settlers began arriving in the area, when Texas was still part of Mexico. They founded the village of Waterloo in 1837, along the banks of the Colorado River. According to local folktales, Stephen F. Austin, the "Father of Texas," negotiated a peace treaty with local Indians at the site of present-day Treaty Oak after several settlers were killed during raids. According to local legend, Austin also negotiated a boundary treaty with the Indians that established the city limits. The Republic of TexasWaterloo was chosen to become the capital of the new Republic of Texas in 1839 and was purchased by the Republic for that purpose. Mirabeau B. Lamar renamed the city in honor of Stephen F. Austin. The town's original name is honored by local businesses such as Waterloo Ice House and Waterloo Records. In 1842, Austin nearly lost its capital status during the Texas Archives War. President Sam Houston had attempted to move the seat of government from Austin to Houston, and then to Washington-on-the-Brazos. In the dead of night on December 29, 1842, a party of men was sent to carry the Texas archives from Austin to Washington-on-the-Brazos. Angelina Eberly fired a cannon at the men; however they escaped but, only to be captured by another group of men who returned the archives to Austin. 1845 to 1899 After Texas was admitted to the Union in 1845, two unsuccessful state elections were held that attempted to move the capital elsewhere. From 1861 to 1865, Texas was part of the Confederacy.St. Edward's University, later St. Edward's Academy, was founded in 1878 by the Rev. Edward Sorin, Superior General of the Congregation of the Holy Cross, on farmland in South Austin. From 1845 to 1899 In September 1881, the city schools admitted the first public school classes. That same year, Tillotson Collegiate and Normal Institute, the predecessor of Huston-Tillotson University, opened to the public. In 1882, construction of the University of Texas at Austin campus began with the placement of the cornerstone of the main building. The University formally opened in 1883. 1845 to 1899. The Texas State Capitol was completed in 1888 on the site specified in the plan of 1839.