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

Tex. Water Code § 13.242

Certificate Required

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Sec. 13.242. CERTIFICATE REQUIRED. (a) Unless otherwise specified, a utility, a utility operated by an affected county, or a water supply or sewer service corporation may not in any way render retail water or sewer utility service directly or indirectly to the public without first having obtained from the utility commission a certificate that the present or future public convenience and necessity will require that installation, operation, or extension, and except as otherwise provided by this subchapter, a retail public utility may not furnish, make available, render, or extend retail water or sewer utility service to any area to which retail water or sewer utility service is being lawfully furnished by another retail public utility without first having obtained a certificate of public convenience and necessity that includes the area in which the consuming facility is located.

(b) A person that is not a retail public utility or a utility or water supply corporation that is operating under provisions pursuant to Subsection (c) may not construct facilities to provide water or sewer service to more than one service connection not on the property owned by the person and that are within the certificated area of a retail public utility without first obtaining written consent from the retail public utility. A person that violates this section or the reasonable and legal terms and conditions of any written consent is subject to the administrative penalties described by Section 13.4151 of this code.

(c) The utility commission may by rule allow a municipality or utility or water supply corporation to render retail water service without a certificate of public convenience and necessity if the municipality has given notice under Section 13.255 that it intends to provide retail water service to an area or if the utility or water supply corporation has less than 15 potential connections and is not within the certificated area of another retail public utility. The utility commission may by rule allow a municipality or utility or water supply corporation to render retail sewer service without a certificate of public convenience and necessity if the municipality has given notice under Section 13.255 that it intends to provide retail sewer service to an area or if the utility or water supply corporation has less than 15 potential connections and is not within the certificated area of another retail public utility.

(d) A supplier of wholesale water or sewer service may not require a purchaser to obtain a certificate of public convenience and necessity if the purchaser is not otherwise required by this chapter to obtain the certificate.

(e) The utility commission may by rule allow a public utility agency that includes a water supply or sewer service corporation as a participant in the agency to render retail water or sewer service without a certificate of public convenience and necessity.

Added by Acts 1985, 69th Leg., ch. 795, Sec. 3.005, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 539, Sec. 13, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 567, Sec. 21, eff. Sept. 1, 1989; Acts 1993, 73rd Leg., ch. 652, Sec. 2, eff. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 979, Sec. 14, eff. June 16, 1995.

Amended by:

Acts 2005, 79th Leg., Ch. 1145 (H.B. 2876), Sec. 3, eff. September 1, 2005.

Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.43, eff. September 1, 2013.

Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 43, eff. September 1, 2013.

Acts 2023, 88th Leg., R.S., Ch. 878 (H.B. 4385), Sec. 1, eff. September 1, 2023.

Acts 2025, 89th Leg., R.S., Ch. 90 (S.B. 1169), Sec. 14, eff. May 20, 2025.

Notes of Decisions
Cited in 18 cases (5 in the last 5 years), 1999–2025 · leading case: Green Valley Special Util Dist v. Donna Nelson, et
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Green Valley Special Util Dist v. Donna Nelson, et (2020) ca5 “2017) (citing Tex. Water Code § 13.242(a)); see also Tex.”
City of Carrollton v. Texas Commission on Environmental Quality (2005) texapp · cites it 4× “Tex. Water Code Ann. § 13.242 (West 2000).”
Creedmoor-Maha Water Supply Corp. v. Texas Commission on Environmental Quality (2010) texapp “See Tex. Water Code Ann. § 13.242 (a) (West 2008).”
City of San Antonio v. BSR Water Co. (2005) texapp “Tex. Water Code Ann. § 13.242 (a) (Vernon 2000).”
City of Blue Mound, Texas v. Southwest Water Company and Monarch Utilities I, LP (2014) texapp “The stated purpose of chapter 13 of the water code is to “establish a comprehensive regulatory system that is adequate to the task of regulating retail public utilities to assure rates, operations, and services that are just and reasonable to the consumers and to the retail…”
City of Carrollton v. Texas Commission on Environmental Quality, Robert D. Balfanz, Truman Clem, Bettye Clem, C.T. Clem, (2005) texapp · cites it 4× “Tex. Water Code Ann. § 13.242 (West 2000).”
City of Carrollton v. Texas Commission on Environmental Quality, Robert D. Balfanz, Truman Clem, Bettye Clem, C.T. Clem, (2005) texapp · cites it 4× “Tex. Water Code Ann. § 13.242 (West 2000).”
City of Palmview v. Agua Special Utility District (2019) texapp · cites it 2× “The first question we must answer is whether the PUC has exclusive jurisdiction over the claim for injunctive relief brought by Agua SUD against the City, a municipality, which allegedly interfered with Agua SUD’s CCN in an area within the municipality’s city limits.”
Megatel Homes LLC v. City of Mansfield, Texas (2025) txnd · cites it 2× “2024) (citing TEX. WATER CODE §§ 13.242 & 13.244; Tex. Gen.”
AIRW 2017-7, L.P.; 600 Westinghouse Investments, LLC; 800 Westinghouse Investments, LLC; Texas Commission on Environment (2025) texapp · cites it 2× “13 Tex. Water Code §§13.242(c) and 13.243. .”
Untitled Texas Attorney General Opinion (2018) texag “See TEX. WATER CODE § 13.242; 30 TEX. ADMIN. CODE§ 291.”
City of Tyler v. Liberty Utilities (Tall Timbers Sewer) Corp. (2018) texapp “See Tex. Water Code § 13.242. See id. § 13.255.”
Show all 18 citing cases →
— Tex. Water Code § 13.242(a) — 8 cases
Green Valley Special Util Dist v. Donna Nelson, et (2020) ca5 “2017) (citing Tex. Water Code § 13.242(a)); see also Tex.”
City of Carrollton v. Texas Commission on Environmental Quality (2005) texapp “Tex. Water Code Ann. § 13.242 (West 2000).”
City of Palmview v. Agua Special Utility District (2019) texapp “The first question we must answer is whether the PUC has exclusive jurisdiction over the claim for injunctive relief brought by Agua SUD against the City, a municipality, which allegedly interfered with Agua SUD’s CCN in an area within the municipality’s city limits.”
Dobbin Plantersville Water Supply Corporation v. Montgomery County Municipal Utility District No. 180 (2025) txsd
Megatel Homes LLC v. City of Mansfield, Texas (2025) txnd “2024) (citing TEX. WATER CODE §§ 13.242 & 13.244; Tex. Gen.”
— Tex. Water Code § 13.242(c) — 1 case
AIRW 2017-7, L.P.; 600 Westinghouse Investments, LLC; 800 Westinghouse Investments, LLC; Texas Commission on Environment (2025) texapp “13 Tex. Water Code §§13.242(c) and 13.243. .”
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