What is a Water District?


The primary purpose of a water district is to provide drinking water and sanitary sewer services to the area within its boundaries. A water district is similar to other political subdivisions, such as a city or a school district and is governed by a board of directors containing five members. Directors are elected to four year terms. The terms are staggered so that at least two positions are up for election every two years.

Water districts must comply with the Texas Open Meetings Act and the Texas Open Records Act and have an annual audit performed by an independent auditing firm.

The District’s Rights and Responsibilities…

While the powers and responsibilities of a water district are determined when it is created, water districts are generally empowered to:

1. Incur Debt – Most districts can issue bonds and other forms of debt. If that debt is to be secured by tax revenues, voters in the district must approve the plan. In most cases, bonds secured in this manner must also be approved by the TCEQ. Texas Commission on Environmental Quality.
2. Levy Taxes – If voters approve unlimited tax bonds, a debt service tax to pay the bonds is also approved. Each year, the water district board is obligated to levy a property tax adequate to cover the debt. This tax is levied on all property in the district based on appraised value, regardless of services received, and must comply with the Property Tax Code. The tax rate must be published each year and public hearings held if the effective tax rate increases more than three percent over the previous year. District voters may also approve a maintenance tax.
3. Adopt Rules and Charge for Services – the district adopts rules which specify the method, terms and conditions of water supply and sewage treatment service.
4. Expend Public Funds – Districts can spend public funds for authorized district activities.
5. Contract for Goods and Services – For contracts more than $15,000, the district must obtain three competitive bids. For those more than $25,000, the district must advertise for competitive bids.
6. Obtain Easements – In order to install, inspect, repair and maintain water distribution and collection lines, a district may obtain and use easements to access land owned by another person; and to exercise the  
7. Right of Eminent Domain – Purchase property for district purposes under this legal provision if deemed necessary and approved by the district.