The City of Shenandoah is moving forward with the City of Panorama Village as the two work to meet state mandates to reduce their reliance on groundwater from the Gulf Coast Aquifer.

Shenandoah and Panorama Village are constructing a well into the Catahoula Aquifer that they may draw their water supply from, and last month, the Shenandoah City Council approved a plan to build a water plant.

The efforts are in response to the San Jacinto River Authority's Groundwater Reduction Plan that mandates that all major water users in Montgomery County must reduce their reliance on the Gulf Coast Aquifer by 30 percent.

"We will save millions of dollars over the life of the well and the life of the contract," said Greg Smith, Shenandoah city administrator.

The cost to the city for constructing the well is about $800,000, while the water plant will cost Shenandoah about $900,000, Smith said. The costs, however, will not be passed on to residents.

Smith said the new water system will have "no impact on [resident] taxes or water rates."