After years of legal limbo, Dripping Springs is finally moving to unclog its growth pipeline. At a Feb. 3 City Council meeting, city leaders took concrete steps to revive a long-stalled wastewater expansion, tapping consultants to design and finance a new treatment plant. The proposed facility would be able to treat roughly 820,000 gallons per day, a crucial increase for a system that officials say is already maxed out and cannot take on new connections. The city plans to lean on state loans and other financing to handle rising costs, with early construction phases projected to roll out over the next few years.
At the Feb. 3 meeting, the council chose Burgess & Niple as engineering consultant, McCall, Parkhurst & Horton LLP as bond counsel and SAMCO Capital Markets as financial adviser, as reported by Community Impact. The city's Request For Qualifications spells out a to-do list that runs from preliminary engineering and environmental reviews to land acquisition and coordination with the Texas Water Development Board.
Court Ruling and Capacity
The South Regional Wastewater System is already running at full capacity, and the city currently cannot accept new service connections, according to the City of Dripping Springs. The permit tied to the expansion would allow treatment of roughly 822,500 gallons per day. City officials have said that rising construction and design costs since 2019 have opened up an estimated $51.5 million funding gap, per local reporting. A Texas Supreme Court decision in April 2025 cleared away a yearslong legal hurdle and allowed the city to restart planning, according to the city's announcement.
Financing and Cost
City procurement documents show the project is structured to depend heavily on programs run by the Texas Water Development Board, including revolving funds and potential grant opportunities, according to the city's Request For Qualifications. Officials plan to pursue TWDB loans and possible grants while they lock in final designs and negotiate contracts with the newly selected firms.
Next Steps
City administrators now have marching orders to negotiate contracts with the engineering, legal and financial teams and bring finalized agreements back to the City Council for approval, as reported by Community Impact. If council signs off, engineers can move into final design and permitting work while staff chases TWDB financing and grant options.
Why It Matters Locally
Sewer capacity is not just a technical detail in Dripping Springs; it is a hard cap on what can be built. Limited wastewater service has been a key bottleneck for both retail and housing. Grocery chain H‑E‑B has told city officials that expanded wastewater service would influence its opening timeline, and a proposed Target store on U.S. 290 has been pitched with timing tied to sewer hookups and permits, according to reporting from Target mega store plan. That development pressure helps explain why city leaders moved quickly once the court cleared the way, lining up consultants and state financing options at the first real opportunity.
The council's consultant picks mark the first practical step in years toward adding sewer capacity. Residents can expect more votes on contracts and financing in the coming months. City officials say they will keep updates flowing through the municipal website and public notices as negotiations advance and permit work gets underway.
