As the Austin region continues to grow, water is becoming one of our most urgent and most complex challenges. The availability of water and its delivery are directly tied to affordability, economic competitiveness, and sustainability. The 89th Texas Legislative Session gives leaders a unique opportunity to invest in these systems that support our region’s future. Texas Gov. Greg Abbott named it as one of his seven emergency items in his State of the State address earlier in the year, calling for a “Texas sized investment in water”.
For Opportunity Austin, that means advocating for infrastructure solutions that keep pace with our growth while ensuring that residents and the businesses in their communities have access to the resources they need.
The State’s Commitment to Water
In 2023, the legislature made the most significant water programs investment in several sessions, forming the Texas Water Fund and allocating $1 billion for its use.
This session, the legislature entered with water as a key issue one again, and a number of leaders mentioned their desire to make a commitment to water above and beyond the 2023 session.
Despite some legislators indicating a goal of spending $5 billion on water, the amount has settled to a figure of $2.5 billion, which still represents the most significant commitment to water funding in the state’s history. On top of that one-time allocation, there are bills to created a dedicated revenue stream of $1 billion per year for water programs. The House and Senate disagree on some of the methodology, but with agreement on the amount and the necessity the differences are likely to get sorted out.
Infrastructure, Affordability, and Economic Growth
These investments are critical for the future of Texas in many ways. Water is important for the basic needs of every community, but it also has important impacts on affordability and the economy.
Sufficient water supply and infrastructure is necessary to build the housing our communities demand and allows for the development of job–creating businesses.
What’s Happening in Our Region:
In Williamson County, both water supply and infrastructure are coming under pressure as growth accelerates, but experts sometimes disagree on where the problem lies.
Regional leaders like the Brazos River Authority have previously emphasized that the overall supply exists, the real challenge is delivering it fast enough to meet demand. But in cities like Taylor, where Samsung’s new facility will require up to 20 million gallons of water per day, questions around long-term supply are common.
Residents are already facing water restrictions, rate hikes, and aging systems not designed for today’s scale of growth. Meanwhile, local utilities are investing in expanded capacity, like the Brushy Creek Regional Utility Authority’s $225 million deep water intake project, to shore up access in the face of drought and fluctuating lake levels. Together, these dynamics highlight that for rapidly growing areas in northern Williamson County, infrastructure and supply challenges are deeply intertwined.
Cities like Buda are addressing their growing water infrastructure needs through partnerships like the one with Alliance Water. Alliance Water, established in 2007, provides long-term water solutions for Buda and its partner entities. Buda’s water infrastructure includes a network of water mains, with the city owning and maintaining the larger mains. Service lines to individual buildings are owned and maintained by the property owners.
The City of Austin has one of the most comprehensive water strategies in the region but like its neighbors, it’s under strain from aging infrastructure, regional growth, and climate volatility.
We Must Invest Now:
The challenges we’re facing aren’t new and the consequences are escalating. With billions in proposed state investment on the table, Central Texas must align on how those funds are used and where they’ll make the greatest impact. Long-term affordability, economic vitality, and environmental sustainability all depend on getting this right. OA is committed to advancing the policy solutions and regional collaboration needed to ensure all the water needs of the region can be met in a responsible and affordable way.
Texas lawmakers are responding to what Sen. Charles Perry has called a “long-term water supply crisis.” His bill, Senate Bill 7, would overhaul how water projects are funded across the state—expanding eligibility, restricting new projects from tapping existing freshwater, and prioritizing support for smaller communities. A companion constitutional amendment, SJR 66, would dedicate $1 billion annually to the Texas Water Fund if approved by voters. With state projections showing a 9% increase in demand and an 18% decline in available water by 2070, Perry and others have warned that economic growth, including new manufacturing, is at risk without bold investment. In Central Texas, where demand is forecast to grow 60% by 2080, leaders say the cost of delay is too high. As Jeremy Mazur of Texas 2036 testified, failure to act could cost Texas $320 billion in the next 15 years—nearly the size of the state’s entire biennial budget.
