Tex. Codes » Water Code · TITLE 2. WATER ADMINISTRATION · SUBTITLE B. WATER RIGHTS · CHAPTER 13. WATER RATES AND SERVICES
Texas Codes

Tex. Water Code § 13.042 (2026)

Jurisdiction Of Municipality; Original And Appellate Jurisdiction Of Utility Commission

✓ current as of May 2026
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Sec. 13.042. JURISDICTION OF MUNICIPALITY; ORIGINAL AND APPELLATE JURISDICTION OF UTILITY COMMISSION. (a) Subject to the limitations imposed in this chapter and for the purpose of regulating rates and services so that those rates may be fair, just, and reasonable and the services adequate and efficient, the governing body of each municipality has exclusive original jurisdiction over all water and sewer utility rates, tariffs, operations, and services provided by a water and sewer utility within its corporate limits.

(b) The governing body of a municipality by ordinance may elect to have the utility commission exercise exclusive original jurisdiction over the utility rates, operation, and services of utilities, within the incorporated limits of the municipality.

(c) The governing body of a municipality that surrenders its jurisdiction to the utility commission may reinstate its jurisdiction by ordinance at any time after the second anniversary of the date on which the municipality surrendered its jurisdiction to the utility commission, except that the municipality may not reinstate its jurisdiction during the pendency of a rate proceeding before the utility commission. The municipality may not surrender its jurisdiction again until the second anniversary of the date on which the municipality reinstates jurisdiction.

(d) The utility commission shall have exclusive appellate jurisdiction to review orders or ordinances of those municipalities as provided in this chapter.

(e) The utility commission shall have exclusive original jurisdiction over water and sewer utility rates, operations, and services not within the incorporated limits of a municipality exercising exclusive original jurisdiction over those rates, operations, and services as provided in this chapter.

(f) This subchapter does not give the utility commission power or jurisdiction to regulate or supervise the rates or service of a utility owned and operated by a municipality, directly or through a municipally owned corporation, within its corporate limits or to affect or limit the power, jurisdiction, or duties of a municipality that regulates land and supervises water and sewer utilities within its corporate limits, except as provided by this code.

Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 539, Sec. 6, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 567, Sec. 5, eff. Sept. 1, 1989.

Amended by:

Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.14, eff. September 1, 2013.

Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 14, eff. September 1, 2013.

Acts 2025, 89th Leg., R.S., Ch. 330 (S.B. 2662), Sec. 2, eff. May 30, 2025.

Notes of Decisions
Cited in 18 cases (2 in the last 5 years), 2002–2025 · leading case: Tara Partners, Ltd. v. City of South Houston, 282 S.W.3d 564 (Tex. App. 2009).
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Tara Partners, Ltd. v. City of South Houston, 282 S.W.3d 564 (Tex. App. 2009). · cites it 16× “(f) This subchapter does not give the commission power or jurisdiction to regulate or supervise the rates or service of a utility owned and operated by a municipality, directly or through a municipally owned corporation, within its corporate limits or to affect or limit the…”
Gatesco Q.M., LTD. v. City of Houston, 333 S.W.3d 338 (Tex. App. 2010). · cites it 4× “Tex. Water Code Ann. § 13.042 (West 2008).”
Williams v. Houston Firemen's Relief & Ret. Fund, 121 S.W.3d 415 (Tex. App. 2003). · cites it 2× “201(a) (Vernon 1998); Tex. Water Code Ann. § 13.042 (a), (b), (e) (Vernon 2000); id.”
City of Carrollton v. Texas Comm'n on Env't Quality, 170 S.W.3d 204 (Tex. App. 2005). · cites it 3× “Tex. Water Code Ann. § 13.042 (West 2000) (emphasis added).”
BCY Water Supply Corp. v. Residential Investments, Inc., 170 S.W.3d 596 (Tex. App. 2005). “” Tex. WateR Code Ann. § 13.042 (e) (Vernon 2000).”
Gatesco, Inc. Ltd. v. City of Rosenberg, 312 S.W.3d 140 (Tex. App. 2010). “See Tex. Water Code Ann. § 13.042 (Vernon 2008) (granting the TCEQ exclusive appellate jurisdiction "to review orders or ordinances” under the Texas Water Code).”
City of Galveston v. Flagship Hotel, Ltd., 73 S.W.3d 422 (Tex. App. 2002). “Tex. Water Code Ann. § 13.042 (Vernon 2000) (emphasis added).”
City of Galveston v. Flagship Hotel, Ltd., 319 S.W.3d 948 (Tex. App. 2010). · cites it 2× “); see also Tex. Water Code Ann. § 13.042 (d) (West 2008) (“The commission shall have exclusive appellate jurisdiction to review orders or ordinances of those municipalities as provided in this chapter.”
Hyde v. Ray, 181 S.W.3d 835 (Tex. App. 2005). · cites it 2× “Tex. Water Code Ann. § 13.042 (e) (Vernon 2000).”
City of Ranger v. Morton Valley Water Supply Corp. & Staff Water Supply Corp., 79 S.W.3d 776 (Tex. App. 2002). “TEX. WATER CODE ANN. §§ 13.042(a), 13.082, & 13.”
City of Palmview v. Agua Special Util. Dist. (Tex. App. 2019). · cites it 6× “It provides that the PUC “shall have exclusive original jurisdiction over water and sewer utility rates, operations, and services [3] not within the incorporated limits of a municipality exercising exclusive original jurisdiction over those rates, operations, and services as…”
AIRW 2017-7, L.P.; 600 Westinghouse Investments, LLC; 800 Westinghouse Investments, LLC; Texas Comm'n on Env't Quality; & Jonah Water Special Util. Dist. v. City of Georgetown, Texas (Tex. App. 2025). · cites it 2× “8 Tex. Water Code § 13.042. ...............”
Show all 18 citing cases →
— Tex. Water Code § 13.042(a) — 7 cases
Tara Partners, Ltd. v. City of South Houston, 282 S.W.3d 564 (Tex. App. 2009). “(f) This subchapter does not give the commission power or jurisdiction to regulate or supervise the rates or service of a utility owned and operated by a municipality, directly or through a municipally owned corporation, within its corporate limits or to affect or limit the…”
Williams v. Houston Firemen's Relief & Ret. Fund, 121 S.W.3d 415 (Tex. App. 2003). “201(a) (Vernon 1998); Tex. Water Code Ann. § 13.042 (a), (b), (e) (Vernon 2000); id.”
City of Carrollton v. Texas Comm'n on Env't Quality, 170 S.W.3d 204 (Tex. App. 2005). “Tex. Water Code Ann. § 13.042 (West 2000) (emphasis added).”
City of Ranger v. Morton Valley Water Supply Corp. & Staff Water Supply Corp., 79 S.W.3d 776 (Tex. App. 2002). “TEX. WATER CODE ANN. §§ 13.042(a), 13.082, & 13.”
City of Palmview v. Agua Special Util. Dist. (Tex. App. 2019). “It provides that the PUC “shall have exclusive original jurisdiction over water and sewer utility rates, operations, and services [3] not within the incorporated limits of a municipality exercising exclusive original jurisdiction over those rates, operations, and services as…”
— Tex. Water Code § 13.042(d) — 5 cases
Tara Partners, Ltd. v. City of South Houston, 282 S.W.3d 564 (Tex. App. 2009). “(f) This subchapter does not give the commission power or jurisdiction to regulate or supervise the rates or service of a utility owned and operated by a municipality, directly or through a municipally owned corporation, within its corporate limits or to affect or limit the…”
City of Galveston v. Flagship Hotel, Ltd., 319 S.W.3d 948 (Tex. App. 2010). “); see also Tex. Water Code Ann. § 13.042 (d) (West 2008) (“The commission shall have exclusive appellate jurisdiction to review orders or ordinances of those municipalities as provided in this chapter.”
City of Palmview v. Agua Special Util. Dist. (Tex. App. 2019). “It provides that the PUC “shall have exclusive original jurisdiction over water and sewer utility rates, operations, and services [3] not within the incorporated limits of a municipality exercising exclusive original jurisdiction over those rates, operations, and services as…”
City of Galveston & Texas Comm'n on Env't Quality v. Flagship Hotel, Ltd. (Tex. App. 2010).
City of Galveston & Texas Comm'n on Env't Quality v. Flagship Hotel, Ltd. (Tex. App. 2010).
— Tex. Water Code § 13.042(e) — 2 cases
City of Palmview v. Agua Special Util. Dist. (Tex. App. 2019). “It provides that the PUC “shall have exclusive original jurisdiction over water and sewer utility rates, operations, and services [3] not within the incorporated limits of a municipality exercising exclusive original jurisdiction over those rates, operations, and services as…”
San Patricio Mun. Water Dist. & South Texas Water Auth. v. City of Corpus Christi (Tex. App. 2011).
— Tex. Water Code § 13.042(f) — 1 case
Pub. Util. Comm'n of Texas & North Fort Bend Water Auth. v. City of Fulshear, Texas (Tex. App. 2025).
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