Hutto City Council approved the swap at an April 21 meeting.
The trade aligns with the boundaries of Lakeside Municipal Utility District No. 9, which Hutto City Council approved the creation of in May 2021.
The 456-acre MUD will include a residential neighborhood and a site for a future school.
Currently, a portion of Lakeside MUD No. 9 lies within Pflugerville's ETJ. After the trade, the MUD will fall fully within Hutto's ETJ.
Mayor Pro Tem Dan Thornton said the new boundaries will better reflect the area each city is capable of providing services to.
"This is actually really cleaning up an area that in the future; it's going to kind of make sense where everything is," Thornton said.
Hutto Development Services Director Ashley Lumpkin said Pflugerville agreed to the trade but still needs to formally approve it.
