A Municipal Utility District is a limited-purpose local government created to provide water, wastewater, drainage, and infrastructure to communities. MUDs make Texas communities possible.

How it Works

MUDs issue bonds to build infrastructure — water lines, wastewater systems, drainage, roads, and parks. Residents repay those bonds through property taxes set publicly by an elected board each year. As bonds are paid off, the tax rate drops.

Who Governs It?

MUDs are governed by an elected five-member board of directors — residents just like you. All meetings are open to the public. Financial and educational information is widely available, including on the internet. Independent audits are required annually. The Texas Commission on Environmental Quality (TCEQ), and other agencies, provide state-level oversight.

By the Numbers

1,600+ MUDs, and similar districts, operate across Texas, serving more than 3 million residents and investing over $50 billion in infrastructure. MUDs enable housing attainability, expand the local economy base, and bring essential utilities to areas of growth.

MUDs make possible the “American Dream” – a steady stream of housing at prices that people can afford, reliable infrastructure, beautiful community amenities, and local control.

Want to know more?  Check out these 99 reasons why MUDs are great for us!

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