About MUDs

Municipal Utility Districts (MUDs): An Overview

What is a municipal utility district ("MUD")?

A municipal utility district, or MUD, is a political subdivision of the State of Texas, like a county or school district, created by the Texas Legislature or Texas Commission on Environmental Quality. A MUD is created by the State over a limited area to provide water, sewer, drainage, park and recreational facilities, and roads. MUDs in The Woodlands focus solely on water, sewer and drainage.

How does Woodlands Water work with MUDs?

Woodlands Water is the central management agency for the ten MUDs that currently serve The Woodlands in Montgomery County; each of these MUDs is rated as a “Superior Water Provider” – the highest rating by the state.

What do MUDs do?

MUDs provide municipal services in areas not in a city, where a city cannot afford to extend these services itself, and/or where the city wants the new development to bear the costs of the new infrastructure for the development.

General information about MUDs in Texas

Texas has more than 1,200 active special districts, and more than 1,700 total special districts, the majority of which were created over land outside of city limits. More than 1 million Texans live in special districts like MUDs.
MUDs have been used to develop numerous master-planned community, including The Woodlands, Clear Lake City/NASA, First Colony, Sienna Plantation, and Cinco Ranch.

How does a MUD operate?

A MUD is governed by a five-member Board that is initially appointed by the Texas Commission on Environmental Quality and later elected by residents of the MUD. The MUD hires professional consultants to advise the Board and assist with the day-to-day operations of the MUD, much like City staff.

How are MUD boards elected?

Elections for MUD’s that are managed by Woodlands Water are held in May of even-numbered years.
Directors are elected for 4-years terms. Should a Director step down mid-term, the Board designates a new Director in their tead to serve the remainder of the term. MUD Directors must either own land in their district or be a current resident of the district.

General information about issuing bonds

At the direction of the Board, and with the assistance of the MUD’s engineer, attorney, and financial advisor, the MUD submits a bond application to the Texas Commission on Environmental Quality (TCEQ). The TCEQ approves the projects for reimbursement to the developer and the amount that the MUD can reimburse to the developer for those projects. The Texas Attorney General then reviews the bonds to ensure compliance with Texas law. This is a highly regulated process (streets must be completed; sufficient water, sewer, and drainage capacity for all the growth projected; enough value on the ground to support the bonds).

More about your local MUD

Find out about your MUD at www.woodlandswater.org including Annual Reports, meeting agendas and recordings, financial reports and more. MUD meetings are open to the public.

Why MUDs Matter

Critical infrastructure

MUDs are responsible for the development and maintenance of critical water, wastewater and drainage infrastructure that directly affects our quality of life.

Local governance, local control

MUD boards are composed of elected officials that make decisions on behalf of the community, addressing its unique needs and preferences.

Levy taxes, set rates

MUDs are funded through property taxes, water and sewer fees, and bonds. This revenue enables them to finance the maintenance and renewal of infrastructure.

Environmental stewardship

MUDs play an important role in ensuring responsible water usage and the proper treatment of wastewater before it’s released into the environment.

Economic development

MUDs stimulate economic development by providing the infrastructure necessary to attract businesses, increase property values, and create jobs.

Quality of life

MUDs contribute to the overall quality of life in a community by ensuring reliable access to clean water, proper sanitation, and essential services. They help create safe and attractive living environments that enhance the well-being of residents.