The Texas Water Development Board (TWDB) released the draft 2027 State Water Plan, proposing a record-breaking $174 billion in capital investments.
The 80-page blueprint outlines more than 3,000 water supply projects designed to ensure that the state remains resilient during a “drought of record” over the next 50 years.
The draft 2027 plan is the most expensive water plan in Texas history, with its $174 billion price tag more than double the $80 billion projected in the 2022 plan. TWDB officials attribute this surge primarily to construction inflation, extended planning horizons through 2080, and lingering supply-chain disruptions.
According to the TPWD, inaction could carry a price: the board warns that without these projects, one out of four Texans could have less than half the municipal water they require by 2080, potentially resulting in $177 billion in annual economic damages by that time.
Despite the $174 billion figure, analysis from the nonpartisan group Texas 2036 suggests the real-world cost is already higher. When adjusted to March 2026 dollars, the capital requirement reaches $186.7 billion.
Jeremy Mazur, director of infrastructure and natural resources policy at Texas 2036, said that even this figure may be conservative, as it primarily covers water supply projects rather than the immense cost of fixing aging existing infrastructure. Mazur estimated that the total investment needed could reach a “quarter of a trillion dollars.”
The plan recommends 6,687 strategies, including 3,036 specific projects such as new surface water reservoirs, brackish groundwater desalination, and aquifer storage. According to the analysis, this expansion is driven by a population projected to grow 53% by 2080, alongside a 10% projected decline in existing water supplies.
New industrial demands are also a factor. A May 2026 study from UT Austin noted that data center growth — fueled by artificial intelligence — could account for up to 9% of the state’s total water use by 2040, up from less than 1% today.
Funding these projects will require a “top-down priority,” according to some industry experts. Perry Fowler, executive director of the Texas Water Infrastructure Network, said that even with recent milestones like Proposition 4 — which established the Texas Water Fund with an initial $1 billion investment—the state still faces a significant funding gap.
The TWDB is currently accepting public comments on the draft plan until May 29 before moving toward final adoption in early 2027.
“What this number tells me at the end of the day is if we don’t get serious about [funding water projects], there are going to be serious consequences for Texas,” Fowler said.