City officials are seeking $4.2 billion to replace Houston’s East Water Purification Plant. The facility is responsible for supplying drinking water to about 75 percent of the city’s residents.
The Houston City Council plans to vote on a study that will determine if water rates will be increased for residents to finance the new plant.
Houston Public Works warned earlier this year of potential boil-water notices and water outages as the risk of catastrophic failure at the water plant grows.
Officials say building a new facility is required because the current facility is beyond feasible repair. According to a project presentation, they are targeting completion of the new plant by 2034 at a cost of up to $4.2 billion.
The cost to maintain the existing facilities during the construction period is not included in that figure.
Mayor John Whitmire’s administration is seeking a mix of funding sources, including an application for $966 million through the State Water Implementation Fund for Texas and up to $2 billion through a federal water infrastructure loan program.
The city also plans to issue $1.3 billion in revenue bonds and contribute $45 million from local funds.
The study is expected to take up to a year to complete.
City officials say the rate study will determine whether additional costs will be passed on to residents through future water bill adjustments.
The plant’s repair effort comes as the city also works to resolve a court-ordered obligation tied to Houston’s drainage and street funding.
Earlier this year, the Texas Supreme Court rejected the city’s appeal in a case brought by two local engineers who argued the city had underfunded its drainage system. The ruling expanded Houston’s 2026 budget deficit from $230 million to $330 million.
This week, Whitmire’s administration reached an agreement with the plaintiffs to phase in the payments over several years.
According to reporting from ABC13, the city will contribute $16 million to the fund this fiscal year, $48 million the following year, and meet the full financial requirement by 2028.
No ads. No paywalls. No government grants. No corporate masters.
Just real news for real Texans.
Support Texas Scorecard to keep it that way!
