Texas water: Are we in for a booming economic future?
This is a preview of our Texas 2036 newsletter diving deep in search of solutions to the state’s future water challenges. To receive this weekly look at our work, sign up here.
Texas runs on water. Here’s why it matters.
Here’s the truth: the continuation of Texas’ economic miracle depends on the reliability of the state’s water infrastructure.
Recent growth in several key economic sectors, including energy, semiconductors and housing, is due to successful state and local water infrastructure investments.
TXLege has taken steps to invest in water
Last year, legislators and voters took the first step in addressing water infrastructure needs with the creation of the Texas Water Fund.
Lawmakers appropriated $1 billion to get the fund going, a crucial initial step. Yet, the larger challenge remains, as in how much more will we need to ensure Texas’ continued growth and prosperity?
5 reasons why water is essential to the Texas Miracle
1. Water infrastructure is playing a part in Texas’ successful economy.
The state’s economy has grown by 63% over the past decade. In 2023, Texas’ $2.6 trillion economy accounted for over 9% of all U.S. Gross Domestic Product. Water infrastructure serves as one of the key cornerstones for this growth.
This economic growth reflects three key elements: qualified workforce, electric reliability and reliable water infrastructure.
2. If we plan and invest for a secure water future, the Texas Miracle will thrive.
Just as water infrastructure has supported Texas’ phenomenal growth, two challenges lie ahead.
First, Texas will need more water supplies for a growing state facing the constant specter of drought. Second, aging, deteriorating water systems are hurting Texas communities.
3. At least $154 billion in investment over the next 50 years in water infrastructure could positively impact Texans.
This estimate is based on inflation-adjusted cost estimates within the 2022 State Water Plan and the Environmental Protection Agency’s community needs surveys.
How is the $154 billion broken down? This price tag includes $59 billion for new water supplies, nearly $74 billion for drinking water upgrades and over $21 billion to fix wastewater systems.
Despite this price tag, Texas 2036’s analysis projects that the state’s funding effort will fall short of what’s needed for long-term infrastructure investment.
Projected State Water Infrastructure Financial Needs
Data from 2022 State Water Plan, EPA Community Needs Surveys
Learn more: Closing Texas’ water infrastructure funding gap
4. Water infrastructure investments pave the way for Texas’ future prosperity.
The state’s continued expansion of multiple industries, including semiconductor manufacturing, data centers, residential construction, petrochemical refining and automotive and aerospace manufacturing, requires reliable water infrastructure.
According to one analysis, every 100,000 acre-feet of incremental water supply can potentially underwrite more than $30 billion worth of economic activity.
Construction of massive Samsung semiconductor fab manufacturing facility in Taylor, Texas (AdobeStock)
5. Texans can lose out on the economic miracle with inadequate water infrastructure.
A prolonged, severe drought similar to that of the 1950s would cost the state’s economy hundreds of billions in lost GDP and over one million jobs.
These economic impacts could be worse than those observed in Texas during the Great Recession and the COVID-19 pandemic.
The Big Picture: The economic costs imposed by aging, deteriorating water and wastewater systems will cost Texas’ communities billions in the coming years.
Texas 2036’s new report dives in on a state water plan
Investments in water infrastructure protect the state’s economy from the losses attributable to water shortages and failing water systems.
Dive into Texas 2036’s latest report “Foundation for Economic Growth: Assessing Texas’ Water Infrastructure Needs” to learn more about how Texas can invest in our state’s water future.
Are you dedicated to a brighter TXwater future?
In 2023, nearly 78% of voters approved Proposition 6 establishing the Texas Water Fund. In fact, more Texas voters supported Proposition 6 than any other water-related ballot proposition since 2000.
Here’s where you, our readers, come in.
Want to learn more about water and its importance to Texas’ future? Sign our petition and tell us you’re dedicated to a brighter water future in Texas!
Our goal is to ensure Texans have more water for continued growth and prosperity. Will you join us?