Groups of volunteers were organized throughout America to join the Texans in their fight for liberty. One of the first was a group that left New Orleans by steamboat, sailing up the Mississippi and Red rivers to Natchitoches, Louisiana, and then marched towards San Felipe. As they crossed the Sabine river and entered Texas, a group of appreciative settlers made this flag and presented it to the militia.

At least nineteen of these men from New Orleans died defending the Alamo on March 6th, 1836. Like the divisions and battalions of a large army, several groups of volunteers at the Alamo carried their own banners, although all generally regarded the "1824" flag as the principal flag for Texas at the time.

The 1824 flag had been create to call attention to the Mexican constitution of that year, which Santa Anna had revoked. Unlike any of the other historic flags of Texas, the Flag of the New Orleans Grays clearly indentified an American origin, and was therefore special to the Mexican dictator.

After the defeat of the Texans, this flag was saved by Santa Anna as proof that his army was not fighting against a revolution of Texans, but rather an invasion by American seditionists. Santa Anna sent the flag back to his government in Mexico City, where it has been held since 1836.