Texas board approves state water plan with $174 billion price tag

The Texas Water Development Board adopted a 2027 State Water Plan on Thursday that calls for a massive estimated $174 billion investment in water infrastructure over the next 50 years.

The price tag for the Phase 1 plan is more than double the $80 billion cost cited in the state's prior 2022 plan.

"The TWDB understands the importance and responsibility of publishing the state water plan every five years to help ensure sufficient water supplies during drought-of-record conditions," Board Chair L'Oreal Stepney said in a statement. 

The plan projects the state's population will increase by 53% from 34.2 million in 2030 to 52.3 million in 2080, while projected total water demand will climb 6% amid a 10% decline in existing water supplies.

To meet potential water shortages during a drought of record, the plan includes about 6,700 recommended water management strategies and 3,000 projects that would provide 2.7 million acre-feet per year in additional water supplies by 2030, and almost 7.6 million acre-feet per year in 2080, according to the statement.

"If Texas does not implement the water supply strategies and projects in the state water plan, a severe drought could cause $91 billion in economic damage in 2030 and $177 billion per year by 2080," it added.

In recent years, Texas voters approved constitutional amendments to boost state funding for TWDB's water supply programs that provide lower-cost financing to local governments through its triple-A-rated bond issues. 

The board sold a record $1.83 billion of State Water Implementation Revenue Fund for Texas bonds in 2025.

A looming water supply crisis in Corpus Christi and a stampede of data center projects have raised concerns about future water availability in Texas. 

Recent rainfall enabled drought-stricken Corpus Christi to push back its projection for a Level 1 emergency – indicating its regional water system is 180 days from supply not meeting demand – to September 2027.

Earlier this month, Gov. Greg Abbott called on data centers to "bring their own power, reuse their own water" amid growing public opposition to these developments.

TWDB said it expects to complete an amended and enhanced version of the water plan this fall.