One of the most southern of all Louisiana parishes, Terrebonne Parish was established March 22, 1822, from the southern part of Lafourche Interior, bordering upon the Gulf of Mexico. Covering an area of 2100 square miles, it is the 2nd largest parish in the state. The early French settlers who christened this parish must have been impressed with the fertility of the soil and marshes because the words "terre bonne" mean "good earth." In 1834, Terrebonne Parish founded the city of Houma in order to establish a centrally located and more easily accessible parish seat. Prior to this, the county seat had been set at Williamsburg (now Bayou Cane) approximately 4 miles northwest of present-day downtown Houma. While Williamsburg sat at the junction of two bayous, Bayou Cane and Bayou Terrebonne, government officials felt that Houma, which sat at the convergence of six bayous, would provide better access for commerce and development in Terrebonne Parish.

Oil and gas made its debut in 1929 and brought a period of economic development and prosperity unparalleled anywhere in the state. The industry grew into enormous dimensions with the discovery of offshore oil. Terrebonne became the gateway to the heaviest concentration of offshore oil service companies in the state. By 1960, the combination on rich oil production backed by Houma's productive waters, fertile soil, and natural mineral resources, Houma became one of the fastest growing cities in America. In 1961, the Houma Navigational Canal was completed to provide a 30 mile link to Terrebonne Bay and the Gulf of Mexico.