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Iowa Colony was founded in 1908 by the Immigration Land Company of Des Moines, Iowa, and received its name from Iowans G. I. Hoffmann and Robert Beard. The community received a post office in 1919, and rice farming was introduced there in 1920. Although not directly on a railroad line, Iowa Colony was served by the Gulf, Colorado and Santa Fe line through nearby Manvel. The population grew slowly to twenty-seven and remained at that level until the mid-1960s. The discovery of oil in 1948 brought regional employment to the area. By 1961 the Iowa Colony post office had closed, yet during the 1960s the settlement began to grow vigorously as part of the greater Houston area. By 1973 Iowa Colony had been incorporated, and by 1989 the town listed a population of 661. The city hall, community center, and municipal court are all housed in the same building, next to the fire department. In 1990 the population was 675. The population was 1,170 in 2010.
Iowa Colony gained notoriety in the early 1990s as a major speed trap and was an inspiration for a Texas statute limiting municipal profits from speed traps.
