Senate Bill 3 and House Bill 4, passed by the 80th Legislature, represent the Legislature’s response to growing demand: the Texas Water Development Board (TWDB) projects that, over the coming 50 years, demand for water in Texas is going to exceed currently available supply. 

The bills, however, perpetuate the flawed state-controlled approach to managing the state’s water resources by expanding on the existing regulatory framework without turning to the free market.    

It is clear that as the state’s population and manufacturing base grows, demand for water will also increase, and the state has a role to play to meet that demand and attempt to prevent waste and pollution. 

However, allowing the demand for water to be met as fully as possible through a competitive market is more efficient than large-scale public works projects and adopting a protectionist approach that places factors such as environmental flows above the creation of a free market for water.

The Task Force will consider ways to apply the principles of free enterprise to help create a water market.  For more, see this TCCRI Research Report: “Open Markets will Meet Texas’ Water Needs”.