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Municipal Utility Districts

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What is a Municipal Utility District (MUD)?

A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage, and other services within the MUD boundaries.

These political subdivisions are usually formed in areas where municipal services are not always available, such as outside city limits in Extraterritorial Jurisdictions (ETJ). They are recognized as taxing entities by the State of Texas to raise funds within its boundaries to pay for the costs of providing the municipal services. MUDs can be a tool used in financing, constructing, and operating quality water, wastewater, and drainage facilities because they allow the developer and future property owners to absorb the costs and pay for them over time. MUDs also help manage growth in the ETJ by allowing development to occur in a planned manner and providing a means to finance the needed infrastructure. 
    How is a MUD created?
    The property owner(s) in the proposed district petitions the City and the Texas Commission of Environmental Quality (TCEQ) to create a MUD. The City and TCEQ evaluates the petition and grants or denies the petition. If approved, the TCEQ appoints five temporary members to the MUD's Board of Directors, until an election is called to elect permanent Board members, to confirm the MUD's creation, and to authorize bonds and taxing authority for bond repayment.
    How does a MUD work?
    The publically elected Board of Directors manages and controls all of the affairs of the MUD subject to the continuing supervision of the Texas Commission of Environmental Quality. The Board establishes policies in the interest of its residents and utility customers. A MUD may adopt and enforce all necessary charges, fees, and taxes in order to provide district facilities and service.
    Does the City of College Station have a policy regarding MUDs?
    Yes, click here to view the City's MUD policy.
    How do I apply to create a MUD within the City of College Station or the City's Extraterritorial Jurisdiction (ETJ)?
    Complete an application to form a MUD. Click here to access the MUD Petition Application.
Complete an application to form a MUD. Click here to access the MUD Petition Application.
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