Reorganizing Groundwater Regulation in Texas

Client

Honorable Glenn Hegar, Texas State Comptroller of Public Accounts

Abstract

Groundwater usage in Texas appears severely dysfunctional. Neither the market for water or regulation is working properly. Currently, 80+ Groundwater Conservation Districts (GCDs) “regulate” groundwater production in their areas, with locally elected boards that act as independent Balkanized states. Selling water across district lines is very difficult, making cities like San Antonio unable to access abundant groundwater in nearby GCDs. At the same time, landowners own the rights to groundwater based on the Rule of Capture, which creates a perverse incentive to extract all you can before your neighbor does.

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