The floods of 1913 and 1921 are the catalyst, which causes the state to attempt to tame the Brazos River. The Texas State Legislature appropriates funds for a survey of all rivers of the state and analysis of flood and water problems. The study clearly established the need for a state agency with the necessary power to carry out the tasks required to harness and control the Brazos River. The Brazos River Conservation and Reclamation District is created under Article XVI, Section 59 of the Texas Constitution, to conserve, control, and utilize to beneficial service the storm and flood waters of the Brazos River and its tributary streams. Lands of the Brazos River basin are producing more than 18 million barrels of oil a year.
Oil becomes the backbone of the economy in many areas of the Brazos River basin.
United States Congress passes the National Industrial Recovery Act, signaling the beginning of the New Deal and a commitment by the federal government to restore the economy through massive spending. Title II of the act creates the Public Works Administration to make loans and grants to states and other public bodies in order to stimulate construction. The District completes its first Master Plan for reservoir development, including a total of 13 dams on the Brazos River and its tributaries. The District begins construction of its first dam and reservoir project,Possum Kingdom, on the main stem of the Brazos River in Palo Pinto County. The United States Congress broadens the mandate of the United States Army Corps of Engineers to include construction of multi-purpose flood controls and water supply projects.