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Georgetown Terminates Water Supply Agreement with GateHouse

Water treatment plant in Georgetown, Texas, surrounded by construction and urban development.

News Summary

Georgetown, Texas, has ended its 30-year water supply agreement with GateHouse Water LLC due to concerns over water resources amid population growth. With a rising demand for water, the city is exploring options to secure reliable sources, including investigating a buyout of GateHouse’s assets. Georgetown is set to face a water supply shortage by 2030 if new sources are not established. The city has signed a two-year agreement with EPCOR and is working on expanding its water treatment plants to meet the increasing demands of its growing population.

Georgetown, Texas has officially terminated its 30-year water supply agreement with GateHouse Water LLC as of May 27, 2025, due to escalating concerns over its water resources amid a growing population and increased water demands. The city is now investigating options for buying out GateHouse’s assets, indicating a shift in its strategy to secure reliable water sources for its residents.

With about 74,000 water customers, of which 40% live outside city limits, Georgetown is facing a looming water supply shortage by 2030 if new sources are not established. The necessity for an expanded water supply has become critical as the city grapples with population growth.

In 2023, Georgetown had signed a new 30-year water supply agreement with GateHouse Water LLC, set to provide 18,500 acre-feet of water annually—nearly 6 billion gallons—from the Simsboro Aquifer located in Lee County. This arrangement was expected to involve the development of new groundwater wells and the construction of a 36-mile transmission pipeline linking the well field to Circleville. However, with three of the six necessary wells already constructed, the city had to reassess its options under the current agreement.

The public-private partnership established with GateHouse included responsibilities for operations, maintenance, and repairs on GateHouse’s side, while the city was to oversee pipeline construction and land acquisition for necessary infrastructure. However, complications and concerns regarding future water supply likely contributed to Georgetown’s decision to terminate the contract.

To keep pace with rising demands, Georgetown has also signed a two-year agreement with EPCOR, reserving up to 55 million gallons of water from Robertson County, while the expansion of the North Lake Water Treatment Plant is nearing completion. This expansion, which increased the plant’s capacity by 30% to 37.4 million gallons per day (mgd), cost approximately $11.7 million.

Moreover, work is underway for the South Lake Water Treatment Plant, which is set to elevate treated water supply by 22 million gallons per day this summer and an additional 22 mgd in the subsequent summer. This construction falls under a $175.3 million contract with PLW Waterworks, funded through developer fees and the city’s water utility revenue.

In addition to local initiatives to expand capacity, Georgetown historically relies on the Brazos River Authority for about 70% of its water supply, but has limited options for groundwater from the Edwards Aquifer. To diversify its resources, city officials are engaged in negotiations with EPCOR, GateHouse Water, and Recharge Water to secure additional groundwater contracts. A significant target includes assessing a potential sourcing of up to 34,800 acre-feet of water annually from the Simsboro Aquifer through Recharge Water.

Furthermore, EPCOR is undertaking a significant infrastructure project involving the construction of an 80-mile underground pipeline from Robertson County to Georgetown, capable of delivering more water to the city. Through these negotiated agreements, city officials anticipate that they may be able to secure up to 110 mgd of additional groundwater supply by the year 2030.

As Georgetown continues navigating these complex water management challenges, city officials expect to provide updates regarding water supply negotiations and developments by the end of 2025. The eventual outcomes of these strategies will be crucial for sustaining Georgetown’s water supply as the city grows.

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STAFF HERE GEORGETOWN
Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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