MUD, Municipal Utility District

A Municipal Utility District (MUD) is a political subdivision of the State authorized by the Texas Water Code (TWC) to provide water, sewage, drainage and other services within the MUD boundaries.

How is a MUD created? A majority of property owners in the proposed district (possibly the developer) petition the Texas Water Commission to create a MUD.After the TWC evaluates the petition and holds a public hearing, it either approves or denies the petition. When approved the TWC appoints five temporary members to the MUD Board of Directors until an election can be held to elect permanent Board members who can authorize bonds and taxing authority for bond repayment.

How does the MUD work? the publicly elected Board manages and controls all of the affairs of the MUD under the supervision of the Texas Water Commission. The Board writes policies in the interest of the of the residents and may make and enforce any fees or taxes to provide services.

Can MUD’s provide parks and pools? A MUD can provide water, wastewater, solid waste collection and disposal, conservation, irrigation, electrical generation, firefighting and recreational facilities which include parks, pools and sport courts.

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