Tex. Codes » Water Code · TITLE 4. GENERAL LAW DISTRICTS · CHAPTER 67. NONPROFIT WATER SUPPLY OR SEWER SERVICE CORPORATIONS
Texas Codes

Tex. Water Code § 67.010 (2026)

Power To Contract With Other Entities

✓ current as of May 2026
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Sec. 67.010. POWER TO CONTRACT WITH OTHER ENTITIES. (a) A corporation may enter into a contract with any political subdivision, federal agency, or other entity for the acquisition, construction, or maintenance of a project or improvement for an authorized purpose.

(b) A corporation may obtain money from any political subdivision of this state, federal agency, or other entity to finance the acquisition or construction of a project or improvement for an authorized purpose.

(c) A corporation may encumber the project or improvement and may encumber any income, fees, rents, and other charges derived from the operation of the project or improvement. The corporation may issue bonds, notes, or warrants to secure payment of funds received. Indebtedness authorized by this subsection is a charge only on specifically encumbered property and revenues and is not a general obligation of indebtedness of the corporation.

(d) A political subdivision may contract with a corporation under Section 552.014, Local Government Code, to carry out this chapter. If a corporation issues bonds secured by a contract entered into under Section 552.014, Local Government Code, the corporation is considered to be acting for or on behalf of that political subdivision for the purposes of Section 1201.002(1), Government Code. A political subdivision is authorized to approve by ordinance, resolution, or order the articles of incorporation and the bylaws of a corporation that is created for the purpose of constructing facilities under a contract as provided by Section 552.014, Local Government Code.

Added by Acts 1997, 75th Leg., ch. 166, Sec. 2, eff. Sept. 1, 1997. Amended by Acts 2003, 78th Leg., ch. 248, Sec. 56, eff. June 18, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(32), eff. April 1, 2009.

Notes of Decisions
Cited in 1 case, 2002–2002 · leading case: City of Ranger v. Morton Valley Water Supply Corp. & Staff Water Supply Corp., 79 S.W.3d 776 (Tex. App. 2002).
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City of Ranger v. Morton Valley Water Supply Corp. & Staff Water Supply Corp., 79 S.W.3d 776 (Tex. App. 2002). “Board of Control, supra at 813; see also TEX. WATER CODE ANN. § 67.010(a) (Vernon Supp.”
— Tex. Water Code § 67.010(a) — 1 case
City of Ranger v. Morton Valley Water Supply Corp. & Staff Water Supply Corp., 79 S.W.3d 776 (Tex. App. 2002). “Board of Control, supra at 813; see also TEX. WATER CODE ANN. § 67.010(a) (Vernon Supp.”
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