Hays County enters major water contract

The agreement is contingent upon approval of the Texas attorney general's office.

Forestar has leased the water rights to about 20,000 acres in Lee County, whose seat, Giddings, is about 70 miles northeast of San Marcos. The company plans to tap into the Simsboro formation of the Carrizo-Wilcox Aquifer.

Hays County will also partner with Forestar in its pursuit of permits and approval necessary to develop the water supply. The initial five-year term of the agreement calls for a base rate of $22.2222 per acre foot per year, bringing the annual cost to $1 million.

Hays County and Forestar began negotiating the agreement more than two years ago. Precinct 1 Commissioner Debbie Ingalsbe described the process as a struggle at times.

"I don't know that there will ever be another opportunity for us to be in this position again, but I do believe it is the best decision to try to secure the necessary water for the future of Hays County and its residents at a reasonable rate," she said.

The project is similar to a collaboration among San Marcos, Buda, Kyle and other smaller water providers, who formed the Hays Caldwell Public Utility Agency several years ago to capture water from the Carrizo-Wilcox east of Lockhart and pipe it back to the I-35 corridor.

The Hays Caldwell PUA partners expect to eventually acquire about 27 million gallons of water per day for the I-35 corridor. By comparison, the county's agreement with Forestar will result in about 40 million gallons per day.

Commissioners said the Hays Caldwell PUA project was "central" to their considerations.

"I believe in local control," Hays County Judge Bert Cobb said. "If some municipality or group says, 'We don't want any water, we don't want to participate,' that's their right. That's their privilege."