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Cottonwood Shores is a small city in southwestern Burnet County, Texas, set on the south bank of the Colorado River in the Hill Country, just below the outlet of Lake Lyndon B. Johnson and near Lake Marble Falls. That position between two reservoirs gives the city its nickname, the "City on Two Lakes," and defines its character as a lakeside residential community. The area appeared on county maps by the early 1970s as a residential development along the river, and it has grown into an incorporated city with its own police department, volunteer fire department, and community institutions. The lakes are the heart of local life. Residents enjoy boating, fishing, jet skiing, and waterfront living, with a yacht club and marina serving the community and the broader lake area. The Hill Country Community Theatre and a handful of nearby restaurants add a modest cultural and dining presence, while Marble Falls, about a mile and a half to the northeast, provides the nearest full range of shopping, healthcare, and services. The city's population is about 1,400, and it is served by the Marble Falls Independent School District, a district that covers a large portion of western Burnet County including Marble Falls, Meadowlakes, and Granite Shoals. Austin lies roughly 50 miles to the southeast, making Cottonwood Shores a practical lakeside home base within reach of a major Texas city. Cottonwood Shores suits people seeking a small Hill Country lake community — direct water access, lakeside views, and a quiet residential pace — with the conveniences of Marble Falls minutes away and the employment and amenities of Austin within commuting range.

Population 1,403

County Burnet

Active Listings 91

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Frequently Asked Questions

What county is Cottonwood Shores in?

Cottonwood Shores is in southwestern Burnet County, Texas, in the Hill Country on the south bank of the Colorado River. It sits just over a mile southwest of Marble Falls, below the outlet of Lake LBJ.

Why is Cottonwood Shores called the City on Two Lakes?

Cottonwood Shores is called the 'City on Two Lakes' because it sits between Lake LBJ (Lyndon B. Johnson) and Lake Marble Falls on the Colorado River. Its lakeside setting, boat access, and marina are central to the community's identity.

What school district serves Cottonwood Shores?

Cottonwood Shores is served by the Marble Falls Independent School District, which covers a large area of western Burnet County and serves Marble Falls, Meadowlakes, Granite Shoals, Highland Haven, and Cottonwood Shores, among other communities.

How far is Cottonwood Shores from Marble Falls?

Cottonwood Shores lies about 1.7 miles southwest of Marble Falls, the nearest larger town for shopping and services. Austin is roughly 50 miles to the southeast, and the lakes themselves provide year-round water recreation.

City Guide

About Cottonwood Shores

Real Estate & Housing

Cottonwood Shores' housing stock is lakeside and low-density, reflecting its origins as a residential development along the Colorado River. Homes include older cottages and modest single-family houses from the community's early years, alongside newer construction and larger waterfront or water-view properties near Lake LBJ and Lake Marble Falls. Many lots offer lake access or boat-friendly positioning, and the surrounding Hill Country terrain gives the area a varied, wooded character. There is little high-density development. The market character is that of a small Hill Country lake community — established homes and some newer builds — where water access, views, and proximity to Marble Falls define the value, appealing to retirees, second-home buyers, and lake-oriented families.

Neighborhoods

Cottonwood Shores is a compact lakeside city rather than a collection of large subdivisions, laid out along the Colorado River shoreline and the streets leading back into the Hill Country hills. The community's waterfront areas, near Lake LBJ and Lake Marble Falls, hold many of its lake-access and view properties, while the interior streets contain the older residential core. The city blends almost seamlessly into Marble Falls to the northeast, with Granite Shoals and other lake communities nearby. This geography means most homes are within a short distance of the water, and the whole city functions as one cohesive lakeside neighborhood, with open Hill Country and the two lakes framing its edges.

Lifestyle in Cottonwood Shores

Life in Cottonwood Shores revolves around the water. Residents live between Lake LBJ and Lake Marble Falls, with boating, fishing, jet skiing, and lakeside living as the everyday backdrop, and a local yacht club and marina anchoring the waterfront community. The pace is quiet and residential, and the Hill Country Community Theatre and nearby restaurants give the town a modest cultural and dining life of its own, supplemented by Marble Falls just over a mile away. The Hill Country setting — granite outcrops, live oaks, and lake views — defines the scenery. It is a lifestyle for people who want a small, lakeside community with direct water access, set just outside a larger town and within day-trip distance of Austin.

Schools & Education

Cottonwood Shores is served by the Marble Falls Independent School District, which covers a large area of western Burnet County and serves the communities of Marble Falls, Meadowlakes, Granite Shoals, Highland Haven, and Cottonwood Shores, among others. The district operates a full range of elementary, middle, and high schools in and around Marble Falls, giving Cottonwood Shores students access to a complete, mid-sized school system rather than a small standalone district. For families, the relevant consideration is this broader Marble Falls ISD landscape, with its programs and facilities located just a short drive away in the neighboring town.

Getting Around

Cottonwood Shores sits just southwest of Marble Falls, connected to the larger town by the local road network and to the region by State Highway 71 and U.S. 281, which serve the Marble Falls area. The city is car-dependent, with no public transit of its own, so residents drive for work, school, and errands, almost all of which are in Marble Falls or the surrounding lake communities. Austin is roughly 50 miles to the southeast via the Hill Country highway network. This position gives Cottonwood Shores a lakeside, small-town setting with a very short commute to Marble Falls and a manageable drive to the Austin metro area for employment and air travel.

Parks & Recreation

Recreation in Cottonwood Shores is water-centered. Lake LBJ and Lake Marble Falls provide boating, fishing, water skiing, and jet skiing, with the Lake LBJ Yacht Club and Marina offering boat and watercraft rentals, a swim park, and waterfront dining. The Colorado River below the Lake LBJ outlet adds a quieter stretch for fishing and paddling. On land, the surrounding Hill Country offers scenic drives, cycling, and hiking, while nearby Marble Falls hosts parks, festivals, and additional lake access. The Hill Country Community Theatre provides local cultural programming. For residents, recreation is inseparable from the two lakes that frame the city, with the broader Highland Lakes chain and Austin's amenities within easy reach.

MARKET SNAPSHOT

The Market at a Glance

How homes have been selling here over the last 90 days.

home_work New This Week 1

Went Under Contract 0

trending_down Price Reductions 0

payments Median Sale Price $306,750 +10.5%

square_foot Price per Sq Ft $212

schedule Avg Days on Market 78

sell Homes Sold 4

percent Sale-to-List Ratio 96.0%

inventory_2 Months of Inventory 34.7

Price & Sales History

Market data reflects closed sales over the last 90 days and is provided for informational purposes.

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