The Lost Pines Groundwater Conservation District on Jan. 15 denied Forestar Real Estate Group's permit that would have allowed the company to pump up to 45,000 acre-feet of water annually from wells in Lee County for use in Hays, Bastrop, Lee, Travis and Williamson counties.

The decision was met with a standing ovation from many of those in attendance.

Forestar has already been granted 12,000 of the 45,000 acre-feet of water it originally requested. The company has a reservation contract in place with Hays County for up to 45,000 acre-feet of water to be pumped from the Simsboro Aquifer annually.

Steve Box, executive director of the Bastrop-based advocacy group Environmental Stewardship, said he was pleased with the district's decision and is ready to support the district if Forestar decides to contest the decision in court.

"It's what I call a bittersweet victory because we're going to face the big hammer next," Box said in reference to Forestar's possible legal contest. "It was what we were expecting and hoping for. It establishes that the board is firm with their previous decision."

Forestar issued a statement saying the permit was intended to address Central Texas' water needs.

"We are disappointed for Forestar, but more importantly for all landowners within the conservation district, whose private property rights have been adversely impacted by this decision," the company's statement read. "We are also concerned for the citizens of Central Texas, as they seek long-term sustainable solutions to the ongoing drought and their future water needs."

Hays County Judge Cobb said the agreement with Forestar is intended to act as a regional water solution for Central Texas and is one part of a water strategy he would like to implement that also includes conservation, use of rainwater and increased use of effluent water.