Georgetown, Texas, September 30, 2025
News Summary
Georgetown, Texas, is considering selling parts of its water utility to neighboring cities such as Killeen and Jarrell in response to increased demand and rising costs. Current projections show a potential yearly shortage of 98,611 acre-feet of water with a population expected to exceed 900,000. The deadline for municipalities to accept Georgetown’s offer to transfer water rights is September 30, while voter approval for any final agreement is scheduled for May 2026.
City of Georgetown Faces Future Water Supply Challenges
The city of Georgetown, Texas, is exploring the sale of portions of its water utility to neighboring municipalities as a strategy to address growing challenges related to future growth and rising water costs. The utility, which currently serves approximately 74,000 customers, is primarily supplied with surface water through a contract with the Brazos River Authority, utilizing sources from Lake Georgetown, Belton Lake, and Stillhouse Hollow Lake.
Georgetown’s service area spans 400 square miles, and local governments including Killeen, Jarrell, Salado, Liberty Hill, and Florence have shown interest in acquiring parts of the Georgetown water territory. The deadline for these municipalities to accept Georgetown’s offer to transfer water rights is September 30.
The city’s management has reported that servicing such a vast area has put significant strain on resources. City Manager David Morgan has indicated that high demand without the sale could lead to a projected shortage of 98,611 acre-feet of water per year. This projected demand reflects an anticipated population increase expected to surpass 900,000 in the near future. The current customer base includes about 40% residing outside Georgetown city limits, affecting areas in Burnet and Bell counties.
Reportedly, Killeen is interested in acquiring some of Georgetown’s water territory but is seeking to avoid the majority, aiming to exclude areas that already have existing infrastructure. The proposed sale is set to involve a transfer of roughly 11,500 customers from Georgetown’s water utility to neighboring cities.
Georgetown’s strategy could stabilize water rates for non-transferred customers, allowing a slower increase in rates after the transfer. Any agreements finalized will require voter approval scheduled for an election in May 2026, in addition to clearance from the Public Utility Commission of Texas.
Background Context
In 2019, the city of Georgetown successfully dissolved the Chisholm Trail Speciality Utility District, which previously serviced parts of southern Bell County and northern Williamson County. This strategic move paved the way for Georgetown to refocus its water service strategy, with the aim of retaining control over customers within the city limits and its extraterritorial jurisdiction while potentially offloading service in other regions.
Summary of Key Information
| Feature | Details |
|---|---|
| City | Georgetown, Texas |
| Service Area Size | 400 square miles |
| Current Customers | 74,000 |
| Percentage Outside City Limits | 40% |
| Projected Population Demand | 900,000+ |
| Projected Water Shortage | 98,611 acre-feet per year |
| Transfer Customers | 11,500 |
| Voter Approval Date | May 2026 |
| Deadline for Offers | September 30 |
Frequently Asked Questions
What is the purpose of Georgetown selling portions of its water utility?
The city of Georgetown is looking to sell portions of its water utility to manage future growth and rising costs.
Which neighboring cities are interested in Georgetown’s water territory?
Neighboring cities including Killeen, Jarrell, Salado, Liberty Hill, and Florence are interested in purchasing Georgetown’s water territory.
What is the deadline for municipalities to accept Georgetown’s offer to transfer water rights?
The deadline for these municipalities to accept Georgetown’s offer to transfer water rights is September 30.
How many customers does the utility currently serve?
The utility currently serves approximately 74,000 customers.
What is the anticipated water shortage if the sale does not happen?
Georgetown anticipates a significant water shortage of 98,611 acre-feet per year by the projected demand.
When is the voter approval election scheduled?
Any finalized agreement will require voter approval in an election scheduled for May 2026.
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Additional Resources
- City of Killeen Reportedly Interested in Purchasing Georgetown Water Territory
- Wikipedia: Water Rights
- City of Georgetown May Sell Water Utility Territory
- Google Search: Georgetown Texas Water Supply
- Georgetown Begins Process to Sell Water Territory Outside City Limits
- Google Scholar: Water Utility Sales
- Killeen Housing Authority Board to Discuss Sale of Moss Rose Apartments
- Encyclopedia Britannica: Texas Water Resources
- Georgetown Selling Water Rights of Former Chisholm Trail: Will Killeen Make An Offer?
- Google News: Georgetown Texas Water Sale
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.
