The hurricane's 100-mph winds tore away roofs of hotels, condominiums and homes in coastal communities lying in its path, the San Antonio Express-News reported Thursday.
Texas Gov. Rick Perry said he would ask U.S. President George Bush for a disaster declaration for 15 counties to hasten relief for the area.
Hurricane Dolly dumped up to 1 foot of rain in the Rio Grande Valley when it made landfall Wednesday. A Category 2 hurricane when it reached land, Dolly began running out of steam as it moved inland.
Around midnight, Hidalgo County, Texas, officials reported roadways flooded, motorists stranded, trees downed and thousands of people without power.
At least one hospital was locked down, meaning no could enter or leave, while others were using backup generators, Salina told the newspaper.
Officials were concerned about the valley's aging levees but said they seemed to have absorbed the initial impact.
At a U.S. Border Patrol checkpoint at Sarita, agents seized nearly 5 tons of marijuana hidden in a load of cotton seed and arrested the driver, the Express-News reported.