According to the EPA, there are more than 148,000 public water systems in the U.S., charged with providing safe and reliable water to its customers.  97 percent of those systems are considered small systems serving 10,000 people or less, many of which are in rural areas where population is sparse with a negligible tax base.  Routinely, these communities cannot afford the costs associated with infrastructure maintenance and upgrades or to hire trained personnel necessary to run the systems.

Texas has 4300 small water systems, many of which struggle to provide reliable service.[1] The Texas House and Senate recently agreed to allocate $1 billion for water infrastructure in Senate Bill 28 and Senate Joint Resolution 75; however, the amount falls short of the estimated $150 billion necessary to address the escalating demands stemming from deterioration, climate change, and population growth in the next 50 years.[2]  With growing pressure on utilities to perform with strained resources, the state is considering alternative means to provide reliable water.

One idea gaining traction is collaboration between struggling water systems, a tactic shown to be effective in Florida, a state with a large rural population and scores of small water systems much like Texas.  Under Texas law, utilities are already allowed to cooperate, although they have been reluctant to do so for fear of losing control of their systems.  Legislation was introduced this year (House Bill 2701) to alleviate those concerns, paving the way for regional cooperation and operation under one utility agency without mandating consolidation or a lengthy approval process.  Some consolidation is already happening in areas experiencing dire circumstances.

A second tactic introduced this year is part of Senate Bill 28 which allocates funds for new water supply projects and for infrastructure repairs in rural areas.  The bill also establishes a technical assistance program under the Texas Water Development Board for public utilities in rural areas.  The program would assist those utilities with the application of grants and loans provided by the board, tasks that are daunting for agencies with inadequate record-keeping and a lack of personnel capable of filing the required documents.  The bill passed and now waits for Gov. Greg Abbot’s signature.  If it clears that hurdle, it will be voted on in the fall.

The continued stressors of climate change and population growth exacerbate the already grim outlook for small water systems.  Future responses will likely combine traditional funding from all levels of government with unconventional ways of operating as these systems add to their cache of alternative approaches to ensure safe, reliable water for all.

[1] UNC Environmental Finance Center. “Navigating Legal Pathways to Rate-Funded Customer Assistance Programs: A Guide for Water and Wastewater Utilities.” Efc.Sog.Unc.Edu, 2017, efc.sog.unc.edu/wp-content/uploads/sites/1172/2021/06/Nagivating-Pathways-to-Rate-Funded-CAPs.pdf.

[2] Mazur, Jeremy B. “The High Price for Texas’ Water Future.” Texas 2036, 23 Feb. 2023, texas2036.org/posts/the-high-price-for-texas-water-future/.