Texas City is a city in Chambers and Galveston counties in the U.S. state of Texas. The population was 41,521 at the 2000 census. It is a part of the Houston Sugar Land Baytown, Texas Metropolitan Statistical Area. Located on the southwest shoreline of Galveston Bay, Texas City is a busy deepwater port on Texas' Gulf Coast. By 1925, Texas City had an estimated population of 3,500 and was a thriving community with two refineries producing gasoline, the Texas City Sugar Refinery, two cotton compressing facilities, and even passenger bus service. Texas City refineries and chemical plants played a key role in supplying the war effort.