Hydrodynamical simulations of galaxy formation in a texture-seeded cosmology are presented, with attention given to Omega = 1 galaxies dominated by both hot dark matter (HDM) and cold dark matter (CDM). The simulations include both gravitational and hydrodynamical physics with a detailed treatment of collisional and radiative thermal processes, and use a cooling criterion to estimate galaxy formation. Background radiation fields and Zel'dovich-Sunyaev fluctuations are explicitly computed. The derived galaxy mass function is well fitted by the observed Schechter luminosity function for a baryonic M/L of 3 and total M/L of 60 in galaxies. In both HDM and CDM texture scenarios, the 'galaxies' and 'clusters' are significantly more strongly correlated than the dark matter due to physical bias processes. The slope of the correlation function in both cases is consistent with observations. In contrast to Gaussian models, peaks in the dark matter density distributrion are less correlated than average.