Texas Border Business
AUSTIN, Texas — The Texas Water Development Board (TWDB) approved $31,040,000 in financial assistance for the Agua Special Utility District (Agua SUD) for the construction of a major water system improvement project. The assistance consists of $21,040,000 in financing and $10 million in principal forgiveness from the Drinking Water State Revolving Fund.
Agua SUD serves the cities of Palmview, Peñitas, and Sullivan City, as well as the communities of Cuevitas and Los Ebanos, and provides water and wastewater service to approximately 64,633 residents. The district’s effective production capacity is currently 13.50 million gallons per day (MGD), current demand exceeds 85 percent of that capacity. Average daily demand is projected to rise to 19.13 MGD by 2042, creating a projected shortfall of 5.63 MGD.
To address this need, Agua SUD plans to construct a new surface water treatment plant on the northeast side of its service area. The plant will have an initial treatment capacity of 5.0 MGD and will be designed for future expansion to 10.0 MGD as demand increases. Construction is expected to begin in September 2027 and be completed by September 2029.
Senator Juan “Chuy” Hinojosa expressed his support for this funding, stating, “Today’s action is a major investment in the long-term water security of western Hidalgo County. This funding will help Agua SUD build the infrastructure needed to keep pace with growth, strengthen reliability for existing customers, and ensure families and businesses have access to dependable drinking water for years to come.”
This latest action builds on TWDB’s June 2025 approval of $6.06 million for the planning, acquisition, and design phase of the same project. Agua SUD’s 2024 water conservation plan likewise identified the district’s growing demand, current system assets, and the need for a new 5 MGD water treatment plant to support future service.
Information source: Office of Senator Hinojosa
