Cedar Bayou is a natural pass which connects Mesquite Bay with the Gulf of Mexico through the barrier islands . It is the dividing line between San Jose Island (aka St. Joe Island) and Matagorda Island. The fresh flow of water and nutrients through the pass are a major contributor to the health of Mesquite Bay. The sloughs and inlets around Cedar Bayou offer excellent fishing for virtually all game fish found in the Texas Coastal Bend.