Georgetown, September 25, 2025
News Summary
Georgetown officials have announced the intention to sell a significant part of its 400-square-mile water service area beyond city limits. This strategic move aims to manage growth effectively and reduce rising infrastructure costs, while still providing water services within city limits and extraterritorial jurisdiction (ETJ). Neighboring cities such as Liberty Hill and Killeen will have priority in acquiring portions of this service area. The process will unfold over the next two years with multiple checkpoints to ensure a smooth transition.
Georgetown, Texas Plans Major Water Service Area Transfer by Late 2027 to 2029
Georgetown officials have announced plans to sell much of its 400-square-mile water service area that extends beyond city limits in a strategic move to better manage growth and control rising infrastructure costs. The transfer aims to enable the city to focus resources nearer to home while continuing to provide water service within its city limits and extraterritorial jurisdiction (ETJ).
Neighboring cities, including Liberty Hill, Killeen, Salado, Florence, and Jarrell, will have first dibs on acquiring portions of the water utility that falls within their boundaries. The decision comes following a rapid increase in water demand in the area, which is currently exceeding the supplies available through the merger of the Chisholm Trail Special Utility District that Georgetown inherited in 2014.
The decision to transfer the water service area is primarily driven by the need to relieve Georgetown residents of the unsustainable burden of expanding services for outlying developments, as approximately 40% of water customers are currently residing outside the city limits. The city absorbed the full service territory due to a state mandate, even though officials initially planned to serve only the ETJ.
Key Details of the Transfer Process
Georgetown is set to initiate the transfer process which will take at least two years and encompass several critical checkpoints. The first step involves neighboring cities submitting initial responses to Georgetown’s sale offer by the end of September 2025. Following that, the Georgetown City Council may authorize an election in early 2026, which would culminate in a public vote in May. If the proposed transfer receives approval, it will then need to undergo a review by the Texas Public Utility Commission (PUC), which oversees the sale of service areas to both private and public utilities.
If Liberty Hill declines the initial offer, Georgetown will open the territory to other interested parties through a request-for-proposals process. Water rates in these transferred areas are anticipated to continue rising due to ongoing infrastructure development costs and the necessity of securing water supplies.
Despite the complexities of the transfer, Georgetown city officials have assured residents that no customers will lose access to water during the transition, as service within city limits and the ETJ will remain intact.
Background Context
The decision to transfer the water service area is a response to rapid development that has led to water demand exceeding current supplies by more than 800 times the initial amount available at the time of the merger. This development trajectory has prompted concerns about sustainability, making the transfer a vital step toward regulating and managing water resources more efficiently.
Liberty Hill stands to gain more authority over water service for its residents if it successfully acquires the territory. Nevertheless, if that city opts out, other municipalities will have the opportunity to take part in the procurement process. Regulating bodies like the PUC will play a critical role in overseeing the process from start to finish, ensuring compliance and proper management of the utility transition.
Conclusion
The water service area transfer set to take place in Georgetown reflects the city’s proactive approach to managing growth and ensuring adequate water supplies for its residents while navigating the complexities of infrastructure development and regional planning.
FAQ
What is Georgetown planning regarding its water service area?
Georgetown plans to sell much of its 400-square-mile water service area that extends beyond city limits.
Why is Georgetown making this decision?
The decision aims to manage growth, control rising infrastructure costs, and focus resources nearer to home.
What areas will Georgetown continue to service?
Georgetown officials will continue providing water service within city limits and its extraterritorial jurisdiction (ETJ).
Which neighboring cities can acquire portions of the service area?
Neighboring cities, including Liberty Hill, Killeen, Salado, Florence, and Jarrell, will have the first opportunity to acquire portions of the utility within their boundaries.
What did Georgetown inherit when it absorbed the Chisholm Trail Special Utility District?
Georgetown inherited the entire service territory of the Chisholm Trail Special Utility District, which included areas in Bell and Burnet counties.
What is the expected timeline for the transfer process?
The transfer process will take at least two years and includes several major checkpoints.
What happens if Liberty Hill declines the offer?
If Liberty Hill declines the offer, Georgetown will make the territory available through a request-for-proposals process.
How will the transfer impact water rates?
Water rates in the transferred areas are expected to continue rising due to infrastructure development costs and securing water supplies.
Will customers lose access to water during the transition?
Georgetown assures that no customers will lose access to water during the transition, maintaining service within city limits and ETJ.
Key Features of the Water Service Area Transfer
| Feature | Details |
|---|---|
| Transfer Scope | Sale of a 400-square-mile water service area beyond city limits |
| Neighboring Cities | Liberty Hill, Killeen, Salado, Florence, Jarrell offered first opportunity |
| Customer Impact | No loss of access to water during transition within city limits and ETJ |
| Initial Response Deadline | End of September 2025 for neighboring cities |
| Public Vote Date | May 2026, post city council’s authorization in early 2026 |
| Projected Completion | Transfer process may extend into 2029 if hearings requested |
| Current Demand vs. Supply | Current usage exceeds initial supply by more than 800 times |
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Additional Resources
- Community Impact: Georgetown Water Sale
- Wikipedia: Georgetown, Texas
- KXAN: Georgetown Water Service
- Google Search: Georgetown Texas Water Service Transfer
- Liberty Hill Independent: Georgetown Water Utility Sale
- Google Scholar: Water Utility Management Georgetown Texas
- Wilco Sun: Georgetown Water Service Territory
- Encyclopedia Britannica: Municipal Water Services
- Community Impact: Georgetown Water Service Sale
- Google News: Georgetown Texas Water Service News
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.
