Santa Rita Courts, a low income housing project managed by the Housing Authority of the City of Austin, sits in the middle of the neighborhood. It is listed as an historic site recognizing it as the first public housing project completed under the 1937 U.S Fair Housing Act. Built during the racially segregated Jim Crow era, Santa Rita Courts housed Mexican American families until it was desegregated in 1968. Nearby, Rosewood Courts housed African American families, while Chalmers Courts accommodated white families. These housing projects serve as reminders of Austin's complex history of racial segregation.

The Tejano Trail, a project of ALMA (Austin Latin Music Association), passes through Holly along Ladybird Lake, extending through the East Cesar Chavez neighborhood and ending at the Mexican American Cultural Center. This trail features sculptures and historical markers that pay tribute to Tejano music legends who have ties to East Austin.

Holly's historical roots trace back to the original City of Austin Plan adopted by the Republic of Austin in 1839, as the neighborhood was within its boundaries. Similar to other areas outside the initial downtown street grid, between East and West Avenues (now I-35 and West Street), large parcels were designated ’Outlots’ for future development.In 1871, the railroad was extended into Austin from Bastrop along what is now roughly 5th Street. This spurred the development of working-class homes, as well as industrial and warehouse facilities. In 1911 homesites in a large subdivision of the land were put up for sale as the ‘Driving Park Addition.’ The display ad in the Austin Statesman advertised “nearly 300 lots for sale.”

During the 1920s and 1930s, Austin experienced a surge in Mexican immigration due to political tensions in Mexico. Mexican families settled in Holly, establishing businesses and building a close-knit community. The City of Austin's 1924 plan for improvement of city services, which included plans to consolidate Austin’s African American population by grouping segregated accommodations in neighborhoods north of 7th street, but it also affected the growing Mexican-American population. Despite the challenges posed by Jim Crowe laws and racial segregation, the Mexican American population continued to grow and thrive in the Holly area. 

The construction of Longhorn Dam, beginning in 1958, transformed the crossing of the Colorado River, once part of the Chisholm Trail, into a reservoir. What was then referred to as Town Lakewas created to cool the Holly Power Plant, an electric power plant fueled by natural gas and petroleum  However, the Holly neighborhood and surrounding areas faced environmental and quality-of-life issues due to chemical spills (in 1974, 1991, and 1992), explosions, constant noise, and vibrations from the plant. Consequently, community members organized to advocate for the closure of the plant, which ceased providing power in 2007. Demolition and land reclamation efforts continued into 2017, but revitalization efforts are  ongoing.,. Notably the Butler Hike and Bike Trail was extended along the lake-side of the plant site in 2021, with the addition of  new parklands.

In 1962, the Austin Aqua Fest was introduced as a tourism promotion event. This week-long program featured water events on Town Lake, celebrity appearances, music performances, and parades centered at Fiesta Gardens. However, as the popularity of the Aqua Fest grew, issues such as parking, congestion, and security concerns emerged, negatively impacting the neighborhood. Responding to resident complaints and protests, the Aqua Fest was eventually relocated to Auditorium Shores in 1980. Austin's City Council changed the name of Town Lake to Lady Bird Lake, two weeks and a day after Lady Bird Johnson died on July 11, 2007.

In recent decades, Holly has experienced significant population growth as Austin's overall population has boomed. Residents  moving  into the neighborhood are exacerbating the housing shortage. In 2017, the City of Austin commissioned a study from the University of Texas to examine the issue of gentrification and propose measures to mitigate its adverse effects. The study, titled "Uprooted," identified Holly as an area undergoing accelerated gentrification, with historical residents already displaced and those remaining at high risk of displacement.

It is within Holly Neighborhood’s rich history, among the vibrant mix of old and new residents, that the Holly Neighborhood Association is being formed. Our purpose it to build community that includes all of our neighbors, to work together to protect and improve the quality of life, and have a voice in our neighborhood's future while preserving the cultural heritage that makes Holly so special.