- Willow City is a small unincorporated community located in Gillespie County, Texas, United States. It is located approximately 14 miles north of Fredericksburg. The community has a population of around 75 people and is primarily residential, with some ranching and agricultural activities. It is known for its scenic countryside and is a popular tourist destination due to its proximity to the Texas Hill Country and the Willow City Loop, a scenic drive that showcases beautiful wildflowers in the spring.