By 1878 the oldest of the wooden hulled ships, the Trinity and Nueces, were worn out from years of refits and laid up in reserve. They were eventually sold in 1879 and 1880, leaving a shortage of vessels in the Texas Navy. To prepare for their loss, Congress authorized a replacement in 1878, the Corvette Colorado. Construction began the following year, and she put to sea in 1881:
Colorado was a radical departure from other ships built for the Texas Navy. Built by the Levingston Shipyard on the Sabine River she was the first vessel completed by a privately owned Texas shipbuilder. She was the first iron-hulled warship, though her decks were still wooden. Her masts were iron, and hollow to allow access to the tops, but again, the top and top-gallant masts were still East Texas pine. Instead of copper sheathing, her bottom was coated in the new anti-fouling paint recently developed. White lead based paint on her uppers turned dark over the iron, giving her a gray appearance.
Here main guns were 6"/30s purchased from the United States, and her secondary battery was 2.25" (57mm) rapid fire Hotchkiss guns that used fixed ammunition (also a first). These weapons used mechanical recoil systems instead of cables and pulleys to put the guns back into battery.
Above all, Colorado was fast. She could make 16 knots under steam, or a similar speed under sail with her engines set for the cruising speed of 12 knots.
But like all ships, she was not without her shortcomings. Her dimensions were as large as the cruiser San Jacinto, so like her cousin the Bosque she was often mistaken for a cruiser. Her wooden decks were vulnerable to shell penetrations. The anti-fouling paint wore off quickly and had to be re-applied or touched up at regular intervals. Accomodations were cramped, a common problem to most Texas Navy ships.
Nonetheless, she gave good service and was joined by three sisters, the Concho, Canadian, and Frio, all built by Levingston.