Conroe City Council voted unanimously to move forward with purchasing water and wastewater systems from subsidiaries of Mid-South Electric Cooperative Association, a deal that would hand the fast-growing city 22 water wells, three wastewater treatment plants, and more than 8,000 new customers. The purchase has not closed, and council still has more steps ahead before the systems officially change hands.
The resolution passed by council authorizes Conroe to sign purchase agreements and prepare to issue water and sewer system revenue bonds, according to Community Impact. The systems being acquired include 212 miles of water lines and eight wholesale contracts, and the deal could give Conroe access to an additional 2 million gallons of surface water per day - capacity city officials say could help serve growth west of town and along the Hwy. 105 corridor. Conroe City Council will still vote separately on the bond sale before the purchase is finalized.
City Administrator David Willard told council the deal took years to reach this point, saying negotiations had many ups and downs and that further talks were terminated at one point along the way, per the same report. He described the opportunity as infrequent, involving a water and wastewater system of high quality and proportion. Mayor Duke Coon called the vote a historic day and a huge step forward for Conroe's water system and infrastructure.
A Deal Born From Years of Water Strain
Mid-South indicated it wanted to focus on its electric and fiber-optic operations and was willing to negotiate with Conroe, according to the Houston Chronicle. Council first authorized staff to negotiate with the cooperative in October 2025. Mid-South, headquartered in Navasota, served members across seven Texas cities.
The purchase follows years of documented underinvestment in Conroe's own water infrastructure. Between 2011 and 2023, city staff requested roughly $195 million for water system projects, but council approved less than 40% of that amount - about $71 million - leaving northern Conroe vulnerable during peak summer demand, the Chronicle reported. That funding gap helped trigger a 120-day development moratorium in August 2024 that halted new residential and commercial permits on the city's north side, later extended in December 2024 before finally lifting in September 2025.
A water dispute at Calfee Middle School was followed by the restoration of water service after discussions, as Hoodline previously covered the Calfee dispute.
Wells, Capacity, and the Math Behind the Shortage
Conroe has been working to increase its water capacity in the meantime. Daily water production rose from 15.4 million gallons to 17 million gallons by April 2025, according to Community Impact, but Coon said at the time that the city immediately needed six more wells, with each additional well estimated to cost between $12 million and $15 million.
Conroe's population reached 114,581 by July 2024 and the city was ranked the No. 1 growth suburb in the Houston metro area and No. 20 nationally in the U-Haul Growth Index for 2025, per the Chronicle. Census data reported in February 2026 showed the combined Conroe-Montgomery regional population grew 25.7% between 2019 and 2024, expanding from 189,824 to 238,549 residents, with ZIP code 77303 recording the sharpest local jump at 39.7%, according to Community Impact.
Regulatory Steps and Financing Still Ahead
The purchase agreements are subject to approval from both the Public Utility Commission of Texas and the Texas Commission on Environmental Quality, as well as the issuance of the bonds themselves. Bond counsel said applications would head to the utility commission following the council vote, and the financing package will return to council for a separate approval before anything closes.
Conroe is preparing to issue new water and sewer revenue bonds to help fund the Mid-South purchase.
The acquisition also follows a separate legal resolution that cleared a major obstacle to expanding Conroe's water supply. In August 2025, Conroe and the San Jacinto River Authority settled a nine-year legal dispute over surface water rates, with Conroe paying accrued fees held in escrow while SJRA reduced Conroe's Groundwater Reduction Plan contract term from 80 years to 40 years, according to the City of Conroe. Meanwhile, council resumed a separate impact fee study in August 2026, conducted by engineering firm Freese and Nichols, to evaluate one-time developer charges that could help pay for growth-related water, sewer, and roadway projects going forward.
