  We present an optical/infrared study of the dense molecular cloud, L935,
dubbed "The Gulf of Mexico", which separates the North America and the Pelican
nebulae, and we demonstrate that this area is a very active star forming
region. A wide-field imaging study with interference filters has revealed 35
new Herbig-Haro objects in the Gulf of Mexico. A grism survey has identified 41
Halpha emission-line stars, 30 of them new. A small cluster of partly embedded
pre-main sequence stars is located around the known LkHalpha 185-189 group of
stars, which includes the recently erupting FUor HBC 722.
