Free Utility Snapshot

Austin Water

Austin and surrounding areas, Texas, United States

Austin’s municipal water and wastewater utility, securing Colorado River supply through a century-long plan while expanding wastewater treatment and reducing water loss.

At a glance

Scale, service and financial position

1.17 millionRetail and wholesale customers (538 sq mi service area)Water Forward 2024
$644,708 thousandTotal operating revenuesFY2024 (year ended 30 Sep 2024) · actual
335 mgdCombined rated water treatment capacityMay 2024
150 mgdPermitted wastewater treatment capacityAs of 27 March 2024
4,025 milesWater mainsFY2023 · actual
$2,416,438 thousandBonds payable (net of discount, inclusive of premium)30 Sep 2024 · actual

01

About the Utility

Austin Water is a department of the City of Austin and the City’s second-largest enterprise. It provides water, wastewater, reclaimed water, conservation and environmental protection services to retail and wholesale customers in Austin and surrounding areas, and has supplied water for more than a century. City Council adopts its long-range water and drought plans and approves rate changes, so supply strategy and pricing are set within city government. Water Forward 2024 cites 1.17 million retail and wholesale customers across a 538-square-mile service area, while federal drinking water records list a population served of 1,115,323, a different measure of the same system.

02

Water System

Austin draws its water from the Colorado River as it flows through Lake Travis and Lake Austin, in the Highland Lakes system managed by the Lower Colorado River Authority. A long-term contract with the authority secures up to 325,000 acre-feet a year of firm supply, roughly double the peak annual diversion. Its three plants provide 335 million gallons a day of rated treatment capacity. Customers cut use from more than 160 gallons per person per day in 2011 to about 131 in 2023, when the Infrastructure Leak Index stood at 4.18. Drought and treatment disruption are the main risks: Winter Storm Uri and a turbidity event at Ullrich each forced a citywide boil water notice.

325,000 acre-feet per yearFirm supply under the LCRA agreement (term through 2050, renewable to 2100)October 1999 contract
9.2Water main breaks per 100 miles (optimized benchmark 15; industry average 25)Black & Veatch analysis, October 2024
13 quartersConsecutive quarters with 'No Violation' status in EPA drinking water recordsApr 2023–Jun 2026

03

Wastewater System

Austin Water also collects and treats the city’s wastewater. Two main plants, Walnut Creek and South Austin Regional, hold 150 million gallons a day of permitted capacity, served by more than 2,996 miles of sanitary mains and 137 City-owned lift stations. Walnut Creek alone treats wastewater for more than half of Austin. Budget standards have aimed to keep reportable overflows below three per 100 miles of sewer a year. A reclaimed water network of 72.8 miles of main supplies non-potable water to 185 properties, anchoring a growing reuse programme.

101 million gallonsAverage daily sewage treatmentFY2023 · actual
2.37Reportable wastewater overflows per 100 miles of lines (goal: below 3)FY2017-18 · actual

04

Investment & Priorities

Capital spending is led by wastewater capacity. Austin Water has broken ground on the $1.5 billion expansion of the Walnut Creek plant to 100 million gallons a day, adding nutrient removal, ultraviolet disinfection and a flood wall, with up to $1 billion of federal WIFIA loans in the funding plan. Spending has run ahead of plan, with 111.30% of planned capital project funds invested in 2024-25. The proposed budget attributes forecast cost growth largely to capital investment and scheduled debt service.

$1.5 billionWalnut Creek WWTP expansion (75 → 100 MGD)Groundbreaking 14 April 2026 · under construction
$107.67 per monthTypical residential bill, up $7.76 (7.8%)FY2027 · proposed
$266.1 millionScheduled debt service paymentsFY2031 · forecast

Debt service coverage

Austin Water and Wastewater System, coverage of Parity Water/Wastewater Obligations, FY2013–FY2023 (years ended 30 September)

times (x)
Debt service coverage: FY2013, 1.5 times (x), actual; FY2014, 1.3 times (x), actual; FY2015, 1.4 times (x), actual; FY2016, 1.9 times (x), actual; FY2017, 1.8 times (x), actual; FY2018, 1.9 times (x), actual; FY2019, 2.1 times (x), actual; FY2020, 2 times (x), actual; FY2021, 1.7 times (x), actual; FY2022, 2.1 times (x), actual; FY2023, 1.9 times (x), actual1231.5FY20131.3FY20141.4FY20151.9FY20161.8FY20171.9FY20182.1FY20192FY20201.7FY20212.1FY20221.9FY2023
Actual

Reported fiscal-year actuals from the operating summaries of three bond official statements; financial policy requires coverage of at least 1.75x.

Sources: City of Austin, Water and Wastewater System Revenue Bond official statements: Series 2017 (FY2013–FY2015), Series 2020C (FY2016–FY2019), Series 2024 (FY2020–FY2023).

05

Sustainability & Resilience

Resilience planning centres on Water Forward, the century-long water resource plan updated in 2024 with stricter conservation and drought rules. Its strategies combine conservation, reuse, aquifer storage and recovery, now in study, and water loss control, with a goal of cutting the Infrastructure Leak Index to 3.0 by 2040. GoPurple requires and rewards reclaimed and onsite water reuse in new development. After Winter Storm Uri, Austin Water published an after-action report as its blueprint for extreme winter weather.

90,100 acre-feet per yearWater Forward strategy yield2040 · plan
16 million gallons per dayPotable water savings from onsite and reclaimed reuseBy 2040 · estimate
3.0Infrastructure Leak Index goalBy 2040 · target

06

Key Challenges

  1. Securing Highland Lakes supply as population grows and drought tests Water Forward.
  2. Delivering the Walnut Creek expansion within its loan-backed funding plan.
  3. Reducing water loss toward the 2040 leakage goal.
  4. Maintaining treatment reliability after citywide boil water notices in 2021 and 2022.
  5. Balancing rising capital and debt costs with residential affordability.

07

Major Projects

Walnut Creek WWTP expansion

Will raise capacity of the plant serving more than half of Austin, adding nutrient reduction, UV disinfection and a flood wall.

Status / period
Ground broken 14 April 2026
Investment / capacity
$1.5 billion · 75 → 100 MGD

North Austin Reservoir and Pump Station

Replaced the city’s oldest reservoir, after 110 years of service, with new storage and pumping.

Status / period
Completed 2025
Investment / capacity
8 million gallons

My ATX Water smart meters

Replaced analog meters citywide with wireless digital meters giving customers near-real-time use data and leak alerts.

Status / period
Completed 2025
Investment / capacity
250,000 meters replaced

Evidence

Sources and reporting periods

This Snapshot draws on Austin Water’s water resource, drought and conservation plans, annual water quality reports, City budgets and audited financial statements, revenue bond official statements, City Auditor reviews, federal compliance records and project announcements.

Evidence through: 2026-09-2132 source documents

Report library

Reports on Austin Water

1 report available for purchase

Water Utility of the Future: Austin Water cover

Utility transformation

Water Utility of the Future: Austin Water

This report evaluates how Austin Water is renewing aging assets, strengthening drought resilience, diversifying supply, modernizing network operations, and stabilizing revenue under Water Forward.
Edition
2026
Price
USD 499
Explore report →

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