Texas is preparing to make the largest financial commitment to its water supply in nearly two centuries, following voter approval of Proposition 4. The measure authorizes up to $20 billion in funding for water-related projects over the next 20 years. The decision comes amid rising concerns about aging infrastructure, increasing demand from population growth, and climate conditions that strain existing water sources.
Despite longstanding cooperation on water policy in the state, this year’s debates highlighted how deeply personal and region-specific water issues can be. In East Texas, proposals involving new reservoirs and the movement of groundwater have stirred strong local resistance. In the Coastal Bend, proposals for desalination plants have generated concerns about environmental impacts and industrial expansion. Meanwhile, residents in parts of West Texas, where groundwater supplies are limited, are increasingly worried about heavy usage tied to data centers and other new development. These varied challenges led state lawmakers to pursue major funding efforts during this year’s legislative session.
Under the plan, a portion of state sales tax revenue—up to $1 billion each year starting in 2027—will be placed into a new Texas Water Fund to support water, wastewater, and flood infrastructure. The funding does not create new taxes; instead, it depends on sales tax collections exceeding $46.5 billion annually. Recent revenue totals suggest that threshold may be met if the state’s growth continues.
However, the funding still falls short of projected needs. Estimates indicate that Texas may require nearly $154 billion over the next 50 years to maintain and expand water systems statewide. Both large metropolitan areas and small rural communities will be eligible to apply for support from the new fund to address system repairs, upgrades, or expansions.
The Texas Water Development Board, the state agency that oversees water planning and supply, will manage the funds. Money will be split between projects designed to increase water supply—such as desalination, water reuse systems, conservation efforts, reservoir construction, and pipeline repair—and programs that support flood control, safe drinking water improvements, and agricultural water conservation.
Support for the proposition came from a broad range of statewide industries, including the oil and gas sector, along with organizations focused on long-term water planning. However, several environmental and community groups raised concerns. Some argued that new reservoirs could lead to the loss of farmland and residential property, while others feared that large-scale desalination projects could accelerate industrial development in vulnerable regions. Certain conservative organizations also objected to embedding the spending authorization in the state constitution.
The measure does not grant automatic approval to any specific project. Individual proposals will still undergo standard review and application procedures. Provisions attached to the fund limit certain activities, including the use of new-supply funding for transferring groundwater from one region to another. Lawmakers have also established an oversight committee, and the water board will be required to provide public reporting on how funds are spent and what results are being achieved.
Supporters of the measure have emphasized that securing reliable funding is critical to addressing future water shortages, maintaining public health, and supporting continued economic growth. They argue that investing now may reduce long-term costs for communities and help ensure that local systems are better able to withstand rising demand and environmental pressures.
