Faced with the challenge of limited future water sources and rapid population growth, the city of Austin is ramping up its efforts in water reuse, conservation, and underground storage as part of an ambitious long-term strategy to meet demand for decades to come. At a recent infrastructure summit hosted by the Austin Chamber of Commerce, water planners and city leaders outlined Austin's evolving strategy, which centers on extending the lifespan of its current water resources through smart technology and sustainable practices. Shay Ralls Roalson, director of Austin Water, emphasized that conservation remains the backbone of the city’s 100-year water plan.

One of the key efforts includes the expansion of Austin’s reclaimed water system, which repurposes highly treated wastewater for non-drinking purposes such as irrigation, cooling systems, and toilet flushing. This allows the city to conserve potable water while reusing water that would otherwise be discarded. To further reduce reliance on drinking water, the city now requires large new developments to install on-site reuse systems capable of capturing rainwater and air conditioning condensate. These steps significantly reduce the burden on Austin’s potable water system. Roalson stated that with the combination of conservation and reuse, Austin could delay the need for new water sources for up to 50 years.

New Approaches to Storage and Future Planning

Beyond water reuse, Austin is exploring aquifer storage and recovery, a method that stores surplus water underground during wet periods and retrieves it during droughts. This strategy offers a valuable buffer against Texas’s increasingly unpredictable climate patterns. Officials are also considering transforming Lake Walter E. Long into a reservoir to store Colorado River water. Another long-term tactic includes indirect potable reuse, where highly treated wastewater is released into Lady Bird Lake and then re-treated for use as part of the city’s drinking water supply.

City planners estimate that these combined strategies could stretch Austin’s existing water resources for the next 40 to 50 years. Only after this period would the city begin pursuing costly and technically complex solutions like groundwater desalination, which remains a distant option due to its high energy demands and expense. “We’re really driving forward with these principles of being thoughtful about how we use water,” said Roalson. “If we do all of these things and stretch the supplies we already have, we don’t need new supplies for another 40 to 50 years.”

Wider Infrastructure Challenges in Texas

Austin’s water planning reflects broader concerns across Texas. The Texas Water Development Board’s 2022 plan estimated that the state will need around $80 billion to fund over 2,100 water projects. Early estimates for the 2027 plan have already increased that figure to approximately $155 billion, driven by inflation, labor shortages, and rising interest rates. While lawmakers have allocated $2.5 billion through a supplemental budget and proposed $1 billion via constitutional amendment, this only scratches the surface of the projected need. Many existing state and federal programs, including revolving funds for drinking water and clean water infrastructure, are already oversubscribed.

In Travis County, where Austin is located, water infrastructure cost estimates have ballooned from $3.4 billion to $16.6 billion. Austin Water itself increased its five-year capital improvement plan from $1.4 billion to $2.3 billion to accommodate future demands. Brooke Paup, chair of the Texas Commission on Environmental Quality, noted a significant increase in permitting requests for water-related projects. The agency is seeking funding to hire over 190 new full-time staff members to handle the surge in applications and protect public health.

Private Investment Emerging in Water Projects

The summit also highlighted how private capital is beginning to play a larger role in water infrastructure development. While public utilities have traditionally led the way in funding and managing these projects, some recent examples—like the water treatment facilities built for the Samsung semiconductor plant in Taylor—have been financed entirely through private debt and equity.

Michael Irlbeck, director of business development at EPCOR, explained that private funding brings both risks and rewards. Unlike public debt, which is repaid regardless of a project’s success, private investment is performance-based. “When we invest and develop a project, we only get paid if it performs according to the contract,” Irlbeck said. “If it doesn’t, the customer doesn’t pay, the ratepayers don’t pay.”

While private funding can accelerate project timelines and reduce strain on public budgets, it often comes at a higher cost due to risk assumptions. Still, many city and state leaders view it as a necessary complement to public efforts in tackling the enormous financial burden of modernizing and expanding water systems. Austin’s long-term planning aims to position the city as a model for sustainable water use in Texas, blending innovation, conservation, and investment to ensure safe and reliable water for a rapidly growing population.