Texas SandFest began in 1997 as a small local competition for sand sculptors to showcase their abilities and talent. It was organized by the Port Aransas Art Center, formerly the Art Center for the Islands and led by Sharon Schafer. The event is held every year in Port Aransas over a weekend in April. Port Aransas Community Theatre (PACT) was formed and all Texas SandFest business was conducted under the umbrella of the theatre. The event would be considered a fundraiser for the theater and PACT would receive the profits from the sand sculpting event. 

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The event has successfully brought thousands of people to visit the island. This has provided extra business opportunities for restaurants, shops and local merchants. By 2006, a request was made to release the festival to stand alone as a nonprofit group. The new theatre was built by PACT after several years of fundraising. The community was willing to donate more to the theatre group. People were more responsive to an event that could spread profits to other non-profit groups in the community. Texas SandFest became a nonprofit organization when it filed and received its 501(c)3 nonprofit status. It began work under a selected Board of Directors.