Executive Summary
The Texas Water Backbone is a proposed 420-mile water transmission system connecting Gulf Coast seawater desalination to the Dallas-Fort Worth metroplex, serving Houston, San Antonio, and Austin along the way. This document provides comprehensive technical, financial, and governance details for legislative consideration.
Part 1: The Texas Water Challenge
Population and Demand Projections
Texas is the fastest-growing state in the nation. The Texas Water Development Board projects population growth from 29.7 million (2020) to over 55 million by 2070—nearly doubling in 50 years.
| Year | Population | Water Demand | Available Supply | Gap |
|---|---|---|---|---|
| 2020 | 29.7M | 18.4M AF/yr | 17.8M AF/yr | 0.6M AF |
| 2040 | 38.5M | 22.1M AF/yr | 17.2M AF/yr | 4.9M AF |
| 2070 | 55.0M+ | 26.8M AF/yr | 15.8M AF/yr | 11.0M AF |
This growth is concentrated in four major metropolitan areas:
- Dallas-Fort Worth: The nation’s fourth-largest metro area, adding millions of new residents
- Houston Metro: Continued expansion despite water quality and subsidence challenges
- San Antonio: Explosive growth straining Edwards Aquifer allocations
- Austin: One of America’s fastest-growing cities with single-source vulnerability
Current Water Stress
Texas water sources face unprecedented pressure:
Edwards Aquifer: In 2024, the Edwards Aquifer Authority implemented first-ever Stage 5 drought restrictions, cutting permitted pumping by 44%. San Antonio’s primary water source can no longer reliably meet demand.
Highland Lakes: Austin’s primary source experienced historic lows in 2023-2024. Lake Travis and Lake Buchanan operate as a single-source system with no backup.
Dallas-Fort Worth: The region depends on a network of aging reservoirs. The proposed Marvin Nichols Reservoir—the primary solution in state water planning—has been blocked by legal challenges for over 50 years.
The Marvin Nichols Impasse
The Marvin Nichols Reservoir illustrates why traditional approaches have failed:
- Proposed: 1960s
- Land impact: 66,000+ acres flooded
- Communities displaced: Multiple rural communities
- Legal status: Perpetual challenges from East Texas stakeholders
- First water delivery: 2050 at earliest (optimistic)
- Cost: $7+ billion (escalating)
The August 2025 mediation agreement between Region C (DFW) and Region D (East Texas) created a five-year pause on Marvin Nichols permitting, with both regions agreeing to jointly seek state funding for alternatives. This agreement creates a policy window for the Backbone.
Economic Stakes
Without adequate water supply, Texas faces severe consequences:
- $153 billion in potential annual economic damages by 2070
- Lost business development opportunities (companies increasingly evaluate water security)
- Reduced agricultural output in key farming regions
- Declining quality of life and property values
The cost of building drought-proof infrastructure is far less than the cost of water scarcity.
Part 2: The Texas Water Backbone Solution
System Overview
The Texas Water Backbone is a transformative infrastructure project that provides drought-proof water supply without taking a drop from East Texas rivers or aquifers.
Key specifications:
| Parameter | Value |
|---|---|
| Pipeline Length | 420 miles |
| Pipeline Diameter | 96 inches (dual configuration) |
| Design Capacity | 200,000–500,000 AF/year |
| ASR Buffer Storage | 360,000 AF |
| Primary Source | Gulf Coast seawater desalination |
| Secondary Sources | Brackish groundwater (inland) |
| Material | Prestressed Concrete Cylinder Pipe (PCCP) |
| Design Life | 75–100 years |
Buffered Network Architecture
Unlike a single continuous pipeline, the Backbone uses a buffered network architecture—five hydraulically independent segments connected by aquifer storage and recovery (ASR) buffers.
| Segment | Route | Distance | ASR Buffer |
|---|---|---|---|
| 1 | Gulf Coast (Freeport) → Victoria | 80 miles | 75,000 AF |
| 2 | Victoria → Gonzales/Carrizo | 100 miles | 100,000 AF |
| 3 | Gonzales → Austin/Highland Lakes | 90 miles | 75,000 AF |
| 4 | Austin → Waco/Temple | 80 miles | 50,000 AF |
| 5 | Waco → DFW Terminus | 70 miles | 60,000 AF |
Benefits of buffered design:
- Energy efficiency: 72% lower pumping costs compared to continuous flow
- Reliability: 99.95% system availability—segments can be maintained independently
- Flexibility: Buffers absorb demand fluctuations and supply variations
- Resilience: No single-point failure can disable the entire system
Water Sources
Primary: Seawater Desalination
Gulf Coast desalination facilities produce high-quality drinking water from an unlimited source. The technology is proven globally:
- Tampa Bay Desalination (25 MGD) - Operating since 2007
- Carlsbad Desalination, San Diego (50 MGD) - Operating since 2015
- Israel national system (600 MGD+) - Multiple facilities
Seawater desalination is:
- Drought-proof: Ocean water doesn’t depend on rainfall
- Scalable: Capacity can expand with demand
- Proven: No technological breakthroughs required
Secondary: Brackish Groundwater
Texas has over 4.5 billion acre-feet of brackish groundwater—water too salty for drinking but easily treated. The Backbone is designed to collect treated water from inland desalination plants through connection stubs.
| Configuration | Capacity | Average Cost |
|---|---|---|
| Seawater only | 500,000 AF/yr | $1,400/AF |
| With brackish | 734,000 AF/yr | $1,170/AF |
Multi-Use Corridor
The pipeline right-of-way accommodates additional infrastructure:
- HVDC Transmission: 3,000–4,000 MW connecting Gulf Coast renewable generation to load centers
- Dark Fiber: 144-strand telecommunications backbone
- Brine Collector: Parallel pipeline returning concentrate from inland plants to coastal processors
- Future Options: Hydrogen pipeline, second water main
Multi-use corridor revenue significantly improves project economics:
| Asset | Investment | Annual Revenue | Payback |
|---|---|---|---|
| Dark fiber | $35M | $12M | 2.9 years |
| HVDC transmission | $1.6B | $192M | 8.3 years |
Part 3: Governance Framework
Texas Backbone Authority
We recommend creating a new independent state agency—the Texas Backbone Authority (TBA)—via enabling legislation.
Board composition (9 members):
- 3 appointed by Governor
- 2 appointed by Lieutenant Governor
- 2 appointed by Speaker of the House
- 1 TWDB representative (ex officio)
- 1 TCEQ representative (ex officio)
Terms: 6 years, staggered. Removal: For cause only.
Operating Model
The Authority operates as an infrastructure owner, not a water producer:
- Private desalination operators build and operate Gulf Coast facilities
- TBA purchases water at Cost + 8% margin
- TBA transmits water through the backbone infrastructure
- Municipalities purchase water at infrastructure-sustaining rates
This model:
- Keeps technology risk with experienced private operators
- Provides guaranteed returns that attract investment
- Maintains public ownership of strategic infrastructure
- Allows competitive procurement of operating services
Pricing Framework
Three-tier pricing:
| Tier | Transaction | Formula |
|---|---|---|
| 1 | Operator → TBA | Operating cost + 8% margin |
| 2 | TBA Operations | Pipeline, pumping, ASR, admin |
| 3 | TBA → Municipality | Pass-through of Tiers 1 + 2 |
Municipal rate: ~$1,400/AF (Year 1)
Rate stability mechanisms:
- Annual rate changes capped at ±10% absent extraordinary circumstances
- Multi-year rate smoothing to avoid spikes
- Cost Stabilization Reserve funded by brine profits
Municipal Access Conditions
Access to Backbone water is conditioned on demonstrated commitment to responsible water management—“Fix the pipes to get the water.”
| Tier | Water Loss (GCD) | Allocation Access |
|---|---|---|
| Tier 1: Full | < 45 GCD | 100% |
| Tier 2: Standard | 45–60 GCD | 80% |
| Tier 3: Conditional | 60–75 GCD | 60% |
| Tier 4: Restricted | > 75 GCD | 40% |
| Tier 5: Probationary | > 90 GCD | Emergency only |
This ensures new supply creates lasting infrastructure improvements, not just replacement for water lost to leaking pipes.
Part 4: Financial Analysis
Capital Costs
| Component | Cost (millions) |
|---|---|
| Pipeline materials (dual 96") | $4,000 |
| Trenching and installation | $2,700 |
| Right-of-way acquisition | $400 |
| Pumping stations | $400 |
| Desalination facilities | $2,500 |
| ASR storage systems | $1,100 |
| Engineering and contingency | $2,320 |
| Total | $11,150 |
Operating Costs
| Component | Cost/AF |
|---|---|
| Desalination operations | $700 |
| Operator margin (8%) | $56 |
| Pipeline operations | $200 |
| Pumping energy | $100 |
| ASR operations | $75 |
| Administrative | $75 |
| Total | ~$1,200/AF |
10-Year Cash Flow Projection
| Year | Production | Sales | Revenue | Costs | Surplus |
|---|---|---|---|---|---|
| 1 | 150K AF | 100K AF | $170M | $166M | $4M |
| 3 | 200K AF | 155K AF | $227M | $212M | $15M |
| 5 | 200K AF | 170K AF | $255M | $227M | $28M |
| 10 | 200K AF | 195K AF | $333M | $269M | $64M |
10-year cumulative surplus: $314 million (funds Phase 1 expansion)
Funding Sources
Texas Water Fund: $6–8 billion (30–40% of $20B fund)
Federal WIFIA: Up to 49% of eligible costs at Treasury rates
Private Investment: $2.5–3.0 billion in desalination operations
Comparison to Alternatives
| Source | Cost/AF |
|---|---|
| Edwards Aquifer | $350 |
| Carrizo-Wilcox | $600 |
| Texas Water Backbone | $1,400 |
| Vista Ridge Pipeline | $2,000+ |
| New reservoir | $1,800–2,500 |
Backbone water is 30% cheaper than the current alternative (Vista Ridge) and drought-proof.
Part 5: Environmental Considerations
Brine Management
Desalination produces concentrated brine (approximately twice seawater salinity). The Backbone addresses this through:
Ocean discharge: Brine discharged through diffusers into open Gulf waters (not bays/estuaries), achieving rapid dilution to background levels within 0.5 miles.
Brine valorization: Partnership with Gulf Coast chemical industry (Olin, Dow) to convert brine into industrial feedstock—salt, chlorine, magnesium, potentially lithium.
Marine Ecosystem Protection
Best available technologies minimize marine impact:
- Intake: Passive wedgewire screens, <0.5 ft/s velocity
- Discharge: Multi-port diffusers for rapid dilution
- Monitoring: Continuous salinity monitoring; quarterly biological surveys
Regulatory Compliance
| Agency | Permit |
|---|---|
| TCEQ | TPDES discharge permit |
| EPA | NPDES (if federal waters) |
| Army Corps | Section 404/10 permits |
| GLO | Submerged lands easement |
Estimated NEPA timeline: 2.5 years for programmatic EIS
Part 6: Implementation Timeline
Phase 1: Planning and Permitting (Years 0–3)
- Legislative authorization
- Preliminary engineering
- Environmental review initiation
- ROW identification
Phase 2: Phase 1 Construction (Years 3–7)
- Gulf Coast to San Antonio segment
- First desalination facility
- Initial ASR development
- First water delivery: Year 5
Phase 3: Full Build-Out (Years 5–12)
- San Antonio to Austin segment
- Austin to DFW segment
- Additional desalination capacity
- Multi-use corridor completion
Part 7: The Legislative Ask
We request the 89th Texas Legislature to:
Pass enabling legislation creating the Texas Backbone Authority with powers to develop, finance, and operate water transmission infrastructure.
Authorize Texas Water Fund allocation of $6–8 billion for initial construction phases.
Direct TWDB to incorporate the Backbone into regional and state water planning, with priority consideration for funding applications.
Establish coordination requirements with TCEQ, TWDB, and regional planning groups.
Appendix: Technical Specifications
Pipeline
- Diameter: 96 inches
- Material: Prestressed Concrete Cylinder Pipe (PCCP)
- Design life: 75–100 years
- Standards: AWWA C301/C304
ASR Storage
- Total capacity: 360,000 AF
- Target aquifers: Carrizo-Wilcox (primary), Gulf Coast, Trinity
- Regulatory: TCEQ UIC Class V permits
Desalination
- Initial capacity: 200 MGD
- Technology: Seawater reverse osmosis
- Energy: ~3.5 kWh/kgal
- Product water quality: Exceeds EPA standards
This document is prepared for policy development purposes. All projections require detailed engineering validation.
Contact: info@texaswaterbackbone.org Website: texaswaterbackbone.org
Texas Water Backbone Project • January 2026