Spicewood situated one mile north of State Highway 71 in southeastern Burnet County, approximately nine miles southeast of Marble Falls. The nearest major city is Austin, located 22 miles southeast of Spicewood. Spicewood is an unincorporated community in Burnet County, Texas, United States. According to the Texas Almanac, the community had an estimated population of 2,000 in 2000. The community was formerly the home of BJ Cafe, which claims to have been an occasional favorite of Willie Nelson. The Cafe closed sometime in the 1990s. Spicewood was established in the late 19th century, although many residents claim direct lineage from settlers in the Early 19th century, many land deeds originating from "script" issued by the Republic of Texas and derived from Spanish land grants.