On January 21,1978 the City of Leander was incorporated and Joe Bates was its first mayor. The City was continuing to grow more rapidly. Subdivisions were being developed west of the city were the water and sewer system was available. As the city continued to grow into the 1980s additional schools were being built in the Cedar Park area. The Leander School district was experiencing tremendous growth. A new city hall was established along with some new additions in the old downtown area. With all of this growth, Leander still continued to be mostly a rural community.

With more homes being built in the west part of Leander the population by the 1990s was 3,398. The school district was growing rapidly and built its second High School in Cedar Park. Many businesses such as service shops and fast food establishments began to locate to the Leander area. The Crystal Falls Municipal Golf Course was built and has proven to be one of the most beautiful and challenging golf courses in the area.