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Establishing a New Water or Sewer Utility

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This page lists questions used in determining whether there is a need to establish a new water or sewer utility and, if the need exists, how to do so.

Before bringing water or sewer service to a new development, you must first consider the following questions:

If you determine that you need to set up a new utility, you may wish to contact the Texas Commission on Environmental Quality (TCEQ) to learn which permits and/or approvals are required. TCEQ can also provide the requirements for designing and building a water or sewer system.

If, after contacting the PUCT, you believe that you have the resources to establish a successful new water or sewer utility, one option available is to create a sole proprietorship or a for-profit water or sewer utility corporation (called an investor-owned utility, or IOU, under the PUC's rules). Another option is to create a nonprofit water supply or sewer service corporation (WSC). To pursue either of these options, you must:

  • Create a corporation through the Texas Secretary of State's Office.
  • Submit plans, specifications and proof of a reliable water supply for your proposed water system to the TCEQ.
  • Obtain a discharge permit from the TCEQ for the proposed sewer treatment plant or arrange to connect with a neighboring system.
  • Secure funding for the proposed utility.
  • Obtain a CCN delineating the service area.
  • Set up a tariff showing your schedule of rates and service rules.

For information about these utility types and their regulations, see Rules and Guidance for Water Utilities.

Further Guidance

Water: What is My Source presents options for determining whether there is an entity that provides retail water or sewer utility service to your area and, if so, who does

DUO is committed to help retail water and sewer public utilities to understand, navigate and achieve regulatory compliance with the PUCT.