While only a few Williamson and Travis County voters had the opportunity to vote on municipal utility district-related ballot items in the May 3 election, the decisions made will impact future residents who move into the district boundaries.
This includes Hero Way West MUD—a new 296-acre district west of Leander and south of Liberty Hill. These entities join a growing number of MUDs rapidly reshaping development in the area.
An extraterritorial jurisdiction is an unincorporated area located outside a city’s boundaries. Special-purpose districts like MUDs are used within or outside of an ETJ to create developments and provide utilities for residents in the area.
In a nutshell
MUDs are special-purpose districts created by the state and used by developers to fund the upfront costs of building new communities in unincorporated areas—land outside city limits that isn’t governed by a municipal government—such as infrastructure for water, sewer, drainage and roads, according to the Texas Municipal League.
Unlike city residents, MUD residents typically do not receive municipal trash pickup, parks access or police services, and instead rely on county resources or private services.
MUDs are governed by locally elected boards, often chosen in low-turnout elections where only a few residents qualify to vote because the land is typically undeveloped at the time, according to previous Community Impact reporting.
Developers also use other forms of special-purpose districts, such as water improvement districts, or WIDs, depending on the type of infrastructure available.
Dozens of MUDs exist in the Leander and Liberty Hill area, many of which are located along US 183 and Hwy. 29 in or near Leander’s ETJ. Since 2023, new state legislation has allowed landowners to leave a city’s ETJ through petition or election, making way for the creation of more MUDs.
The impact
Over the last decade, at least 16 MUDs have been formed in the Leander and Liberty Hill area, with 12 approved since 2020.
Residents in MUDs often face higher tax rates than those within city limits. In 2024, Leander had a tax rate of $0.417282 per $100 of property valuation, compared to $0.9226 in nearby MUDs like Williamson County MUD 31, according to the Williamson County information.
Laurie Dunn, a resident of Williamson County MUD 31, said she’s willing to pay higher taxes as the board of her MUD has been very responsive to community requests, including maintenance work and landscaping projects.
“I think that smaller government programs like this that keep more decisions in the hands of the communities that they’re in is valuable,” Dunn said.
Current situation
The Hero Way West MUD is slated to be developed by Randolph Texas Development. The company has developed land and built homes in multiple MUDs in the Central Texas area, including the Lariat neighborhood in Liberty Hill, Randolph Texas Development President Randy Rollo said.
The Hero Way West development is proposed to include 73 one-acre lots priced around $690,000 on average, according to TCEQ documents. The lots are anticipated to be absorbed within the next three to four years or by 2028 with a total value of $50.37 million at build-out.
“It’s a large tract of land that’s going to have several different product types in it over the course of many years,” Rollo said.
The MUD is expected to construct its own water plant outside of the district’s boundaries and detention ponds for stormwater. The district is not planning to construct wastewater facilities as homeowners will own and operate individual septic systems.
The district will construct and finance roads and local streets that will be owned and maintained by Travis County. The construction of park and recreational improvements, such as parks, pathways and landscaping, is planned for the district.
The Hero Way West MUD will fall under TCEQ oversight, which reviews financial reports and utility bond proposals.
Diving deeper
The Hero Way West MUD will receive groundwater from the Edwards Aquifer. While “there is no indication that groundwater supply is a concern in this area,” “well production rates should be tested prior to development to confirm adequate groundwater is available,” TCEQ documents state.
Annalisa Peace, executive director of the Greater Edwards Aquifer Alliance, said the citizen’s advocacy group has concerns about the demand MUDs place on aquifers amid fast population growth and drought conditions in Central Texas.
The alliance is advocating for county commissioners courts to have approval authority over MUDs. New MUDs can affect nearby homeowners by impacting groundwater supply, traffic and the need for new schools, she said.
What residents need to know
To vote in a MUD election, eligible voters must live within the proposed district. Two voters participated in the May 3 election, Hero Way West MUD representatives said.
Williamson County MUD No. 56 was also on the ballot May 3. The 478-acre district northwest of Liberty Hill is slated to have 206 one-acre lots with an average value of $900,000.
Voters for the Hero Way West MUD election were asked to decide:
Directors: elect the proposed five board directors to govern the MUD
Proposition A: confirm the creation of Hero Way West MUD
Propositions B-D: approve up to $441 million in bonds over 40 years for water, road and recreational related infrastructure
Proposition E: authorize a maintenance and operations tax up to $1.20 per $100 valuation
Proposition F: $0.25 per $100 valuation maintenance and operations tax for operating and maintaining roads
All proposals were approved 2-0 on May 3.
