The Texas Water Environment is About to Significantly Change

Water resource issues in Texas have been a hot topic since the 89th legislative session convened in January of this year. There is no doubt, and all parties agree that Texas must address its water resource issues. However, there are different opinions and viewpoints from water experts on how to proceed.

As the session ended, a bill was passed and sent to the governor’s office for final approval. It allocates $20 billion in spending over the next 20 years. However, Texas citizens will have the final say on how the dedicated funding is allocated through a Constitutional Amendment vote in November.

If approved as the bill is written, the legislation will dedicate $1 billion annually from sales tax revenue to the Texas Water Fund. The allocations will then be split with 50% for new water supply projects and 50% for water infrastructure repairs, conservation efforts, and flood mitigation projects beginning in fiscal year 2027.

Large Projects in the Works

While city and county officials eagerly wait for the funding to be released, it won’t be as quick as they hoped. As a result, many large water projects are being prepared for launch in 2025 and 2026.

For contractors hoping to work on these upcoming water projects, staying ahead of evolving plumbing regulations and technology standards is more important than ever. This year, the plumbing industry is advancing its shift toward water efficiency, automation, and climate resilience, with regulations and project specs evolving to reflect that focus:

·       The 2018 Uniform Plumbing Code (UPC) and International Plumbing Code (IPC) were adopted statewide, with new mandates covering fixture flow rates, energy-efficient water heaters, and enhanced backflow prevention.

·       Texas has enacted tighter conservation policies that support low-flow fixtures, greywater recycling, and smart leak detection systems, which are becoming standard in both residential and commercial projects.

·       Design elements prioritizing health, safety, and resilience—including touchless fixtures, filtration systems, and freeze protection—are now being baked into plumbing specifications for both public and private sector work.

·       The water bill (HB 3214) was passed with significant support and it has been sent to Governor Greg Abbott’s desk for signature. If signed by the governor, it will reduce the journeyman experience requirement for Master Plumber licensure to expand the eligible labor pool and help firms better meet workforce demands. 

·       The Texas State Board of Plumbing Examiners has increased its focus on continuing professional education and field compliance, with stricter enforcement policies that will apply to many of the large upcoming public works projects.

Taken together, these shifts represent a turning point. As Texas prepares to invest billions in its water future, contractors must ensure that their teams, qualifications, and project methodologies align with both state-level regulatory changes and industry best practices in sustainability, automation, and code compliance.

Major Projects

An overview of several major water infrastructure projects now moving toward solicitation follows. These critical efforts are not waiting for new state funding.

City leaders in San Antonio have announced a $32 million aquifer storage and recovery plant expansion project. Once completed, the San Antonio Water System will be able to provide a capacity of 60 million gallons a day, doubling what the current facility can provide. The project will also provide redundancy of current treatment capacity and support future expansions of local well fields. The current systems have been in service for more than 20 years and the project’s objective is to meet the increased demand for water resources. Solicitations may be issued in late 2026 or early 2027.

City officials in McKinney are moving forward with a $19 million Stonebridge water line project which is a key component of the city's $500 million Capital Improvement Program. The city must address escalating demands of its growing population. The project will call for the installation of a 42-inch water main stretching approximately 11,000 linear feet. The new water infrastructure will be designed to enhance water distribution reliability in the Stonebridge area and support not only current residents but also meet future demand projections. This project is part of the $245 million being spent on current and future water infrastructure projects that include new water lines and new water pump stations. The city is currently working to acquire the necessary land and easements to facilitate construction. As soon as the land acquisition is complete, solicitations will be released. Construction is slated for 2026.

A $24.75 million plan to overhaul water wells and construct new water transmission lines for the city of Pecos has been announced. City leaders are undertaking this water utility infrastructure project to address critical needs and preserve fiscal responsibility. The improvements will include the construction of new transmission lines and upgrading of older wells. Both are essential to meet current deficiencies and future demand. Existing pipes have become damaged and rusted over time and the protective galvanized coating has worn out, resulting in frequent leaks and breaks. The required funding support will come from a USDA loan and a grant, with the loan being repaid from the city’s water and sewer utility system revenues, sparing taxpayers from any tax increases. The project is currently in the planning phase which is expected to last through the fall of 2025. Once this is completed, solicitations for design and construction are anticipated.

Texas officials will launch an abundance of water projects before the state’s 2027 water funding is made available. Although there will be plenty of opportunities to pursue, interested contractors should get positioned now because the state’s 2027 fiscal year actually starts on September 1, 2026, and that date will arrive very soon.