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Indeed, on South Congress -
http://www.alleykat.co.uk/images/stuff/misc/WP_20150710_003.jpg
South Congress is a good area for food & open air music and stuff but not particularly blues, in the centre the 6th Street zone is packed with clubs & bars with music. Don't think any are especially blues but almost certainly will be blues somewhere - we spent a while sat on the street drinking & listening to a guy playing slide with a drummer. 6th is mad at the weekends, packed with people and music everywhere.
Also the Shady Grove does open air music (could be all sorts), we saw Ray Wylie Hubbard there free (it's sponsored by the local Subaru place) while drinking margeritas and eating great pulled pork etc. It's not central so may need to drive or cab (it gets packed so have to hunt out parking).
Have fun. I could happily live in Austin. Though I'd be dead in a week from late nights, bourbon, margeritas, weed and pulled pork...
(formerly miserneil)