Water Resources

Interim Updates to Essentials of Texas Water Resources for 2026

Lauren Thomson Texas Bar Practice Blog, Updates

Interim Updates to Essentials of Texas Water Resources for 2026

Written by
Lauren Thomson
 & Holly Heinrich
March 30, 2026
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2025 was a year of notable change for water resources in Texas. Beginning with the 89th Regular Legislative Session, multiple major proposals regarding water funding and infrastructure passed into law. Then, during the 1st and 2nd Special Sessions, water management remained at the forefront following the devastating floods in Central Texas. Combining all these developments, the editors and authors behind the Essentials of Texas Water Resources are releasing an interim update supplementing the eighth edition of the book released in 2024.

What’s New in This Interim Update?

The interim update focuses on recent developments, specifically targeted toward major flood infrastructure updates and the impact of the voter-approved Proposition 4, a constitutional amendment for the allocation of a portion of sales tax revenue to the Texas Water Fund, among other water resource developments.

This is the first Essentials interim update. Readers who have already purchased the eighth edition of the book will receive a digital version of the interim update automatically. The Interim Update will be available soon.

Flood Management Update

Following the July floods in the Texas hill country, Texas passed several flood-related bills aimed at disaster preparedness, relief, and response. The interim update outlines the changes stated below, as well as other legislative and case law updates.

The most recent changes from the Texas legislature relate to flood funding. Major funding bills include Committee Substitute Senate Bill 5, which puts $300 million toward increased flood preparedness, disaster aid, local warning equipment, and weather forecasting. Other bills, like House Bill 22, now allow the state comptroller’s office to send funds directly to local governments for communications equipment. Others, like House Bill 1 and Senate Bill 1, target planning protocols and licensing restrictions for summer camps located in floodplains.

Within the Texas Water Code, the expansion of the definition of “flood project” clarifies which entities can access resources for flood mitigation efforts. Under § 16.502, the Texas Water Development Board must identify areas prone to flash flooding and must implement warning sirens.

Apart from the legislature, the courts continue to face flood control questions. Recent developments include the continued narrowing of Texas Water Code § 11.086 following Kelly Custom Homes, LLC v. Hopper; the availability of governmental immunity in flood cases following City of Highland Village v. Deines; and how to balance public safety and private property rights for floodplain management in City of Kemah v. Crow.

Proposition 4 Approval and Early-Stage Implementation

A critical issue for water suppliers, agencies, and local communities is the impact of Proposition 4’s passage last November.

Proposition 4 was the voter-approved constitutional amendment stemming from Senate Bill 7 and House Joint Resolution 7 passage during the 89th Session. The amendment dedicates $1 billion each year to the Texas Water Fund outside the general revenue fund to strengthen support for critical water, wastewater, and flood mitigation needs while also increasing the amount of assistance available for local communities. Allocation begins in 2027 and continues until 2047.

With its passage, the Texas Water Development Board will be responsible for allocating no less than 50% of the funds to the New Water Supply for Texas Fund and the State Water Implementation Fund for Texas. The remaining funding will be subdivided between new and existing funding programs, including the Flood Infrastructure Fund, Agricultural Water Conservation Fund, and Texas Water Development Fund.

New priorities for the Texas Water Fund, added by Senate Bill 7, include funding for wastewater infrastructure projects, including rehabilitation or replacing old infrastructure, grants for rural populations, and technical assistance for applicants using these funds. Likewise, there is a strong focus on expanding financial assistance for rural and economically distressed communities that lack basic infrastructure.

It is important to also note that Proposition 4 accompanied various other funding bills focusing on infrastructure, local water projects, and information and technology risk mitigation measures. Therefore, multiple funding opportunities for water improvement to infrastructure, administration, and research will be available soon.

Coming Soon: 2026 Update to Essentials of Texas Water Resources

This first interim update is a must-read for those interested in the most pertinent and fast-changing regulatory and legislative updates regarding flooding and water infrastructure funding following the 2025 legislative session. The update will be available soon.

The authors would like to thanks Kasey Andrews for her assistance in preparing this article.


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Lauren Thomson

Lauren Thomson is a Principal at Lloyd Gosselink in Austin, TX, where she assists clients with issues pertaining to water quality, water resources development, regulatory compliance, enforcement, permitting, and litigation.

Holly Heinrich

Holly Heinrich is an energy regulatory attorney at Husch Blackwell in Austin, TX, where she advises a variety of energy clients, including generation companies, generation developers, generation investors, retail electric providers, and large load clients (such as data centers) seeking interconnection with the ERCOT grid.
Holly Heinrich

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