AUSTIN — Texas voters recently approved a significant boost to water infrastructure, adding $20 billion to the Texas Water Fund over the next two decades. However, the Texas Water Development Board (TWDB) indicated that this funding won’t be accessible until the fall of 2029.
This measure, known as Proposition 4, garnered support from over 70% of voters—roughly 2 million individuals. The funds are intended to upgrade aging water systems statewide and to finance new sources of water to accommodate the growing population.
“Over the next 50 years, Texas will need more than $200 billion for wastewater and flood infrastructure,” remarked Sara Kirkle, director of policy and legislation for the Texas Water Works Association. “So this $20 billion is an essential first step.”
In 2023, Texas water systems managed to purify and produce 1.17 trillion gallons of water. Unfortunately, the Texas Water Development Commission reports that a staggering 158 billion gallons—about 13%—were lost to leaks, which translates to a cost of over $326 million.
For context, the 158 billion gallons lost in 2023 is roughly equivalent to 500,000 acre-feet, or enough to fill Lake Austin approximately 20 times.
The 2023 figures are currently the most up-to-date statewide data available from the Texas Water Development Commission, which tracks water loss in municipal systems through annual audits.
For instance, Austin reportedly lost 9.3 billion gallons of water last year. This loss is enough for every one of the city’s 250,000 water connections to leak about 110 gallons per day, based on the city’s water loss audit data.
Water loss experts have noted that several major cities, including Houston and San Antonio, also struggle with leak issues. Securing new water sources can be expensive, making leak prevention—essentially conserving already produced water—an important focus.
According to the TWDB, “Reducing water losses allows utilities to enhance water use efficiency, improve their financial standing, and support sustainable water management in the long run.”
Kirkle pointed out that water rates are rising throughout Texas as water utilities and local governments seek ways to fund complex and pricey wastewater and water initiatives. “Utilizing state interest rate reduction programs can help lower costs for communities and ultimately for ratepayers,” she explained.
Earlier this year, voters also sanctioned a one-time investment of $1 billion into the Texas Water Fund. The TWDB is required to allocate at least 25% of its funds to the Texas New Water Fund.
As of September 2025, the TWDB has already committed over $735 million in funding from the Texas Water Fund through various financial assistance programs. A TWDB spokesperson noted that 46 projects have been invited to submit detailed applications.
The new funding, expected to total $2 billion every two years, must be approved by Congress during the 90th Congress in 2027. If all goes as planned, the Texas Comptroller would transfer the designated funds to the water fund in 2028.
However, the funds can only be transferred if sales tax revenue exceeds $46.5 billion within a single fiscal year. If this threshold isn’t met, the Water Fund won’t receive any allocated funds.
