Municipal Utility Districts in Texas: Emerging Drivers, Trends, & Opportunities

6 Oct 2016
Available with corporate subscription

Municipal Utility Districts in Texas are undergoing strong growth on heels of a housing rebound and streamlined regulation of land development and bond finance. In this Market Insight, Bluefield water experts analyze drivers and inhibitors for the Texas Municipal utility market.

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Texas requires US $3.5 billion of water and wastewater CAPEX investment annually for the next ten years — and municipal utility districts could represent a significant portion of this investment to meet growing demand.  A reinvigorated housing market will further drive infrastructure buildout, including pipes, plants, pumps, and advanced water metering solutions.

This market insight is available to Municipal Infrastructure Insight clients.  For more state-by-state analysis of infrastructure needs, see Bluefield’s new report: US Municipal Water Infrastructure: Utility Strategies & CAPEX Forecasts, 2016-2025.

Bluefield Takeaways

  • Texas housing starts to rebound, increasing CAPEX needs
  • Proliferation of MUD water infrastructure is financed by ‘dirt bonds’
  • City annexation remains a viable long-term alternative to MUDs, which has begun in some counties already.