Kyle advances multi-source water supply strategy to meet 2060 buildout

City of Kyle, Texas · Meeting date: September 10, 2026 · Published: September 16, 2026

Faced with rapid population growth and regional water scarcity, the Texas city is simultaneously pursuing regional groundwater expansions, coastal desalination, and a new potable reuse facility to secure its long-term water future.

Key points

Kyle's updated Water Master Plan projects full buildout by 2060, requiring an ultimate maximum day demand of 32.9 MGD.
The city is preparing to authorize a $12 million debt issuance for its share of the Alliance Regional Water Authority (ARWA) Carrizo expansion, expected to deliver 2.1 MGD by January 2029.
Kyle is maintaining its 10 MGD reservation in the Nueces River Authority's planned 100 MGD seawater desalination project, with a second reservation payment due in October 2026.
The city council will consider a $500,000 feasibility study with Carolla Engineering for a potential 3 MGD direct/indirect potable reuse (IPR/DPR) facility estimated at $143 million.

Full report

The City of Kyle, Texas, is aggressively pursuing a highly diversified water supply portfolio to sustain its rapid population growth, advancing multiple multi-million-dollar regional supply and reuse initiatives during a September 10, 2026, special council meeting.

The strategic push comes as the city updates its Water Master Plan. According to Ryan Owen of STV, the city's engineering consultant, Kyle's ultimate buildout has been revised to 2060. At full buildout, the city's average day demand is projected to reach 19.5 million gallons per day (MGD), with a maximum day demand of 32.9 MGD. While aggressive conservation enforcement successfully flattened water usage in 2023 and 2024 despite a 10% growth in connections, the city's long-term needs far exceed its current firm supply of 6.69 MGD.

To bridge the gap, Kyle is relying heavily on the Alliance Regional Water Authority (ARWA). ARWA Executive Director Graham Moore provided an update on the Phase 1C/1D Carrizo expansion program, which will add nearly 2,300 acre-feet of supply for Kyle. The $270 million regional program is currently facing a $40.4 million funding deficit due to cost overruns associated with treating elevated iron levels in the source water. ARWA is securing $42.84 million in State Water Implementation Fund for Texas (SWIFT) financing to cover the shortfall. Kyle's share of the new debt is 28.17%, or $12.07 million, which the city council is expected to formally approve in October 2026. Water delivery from the expansion is slated for January 2029.

Looking further ahead, Kyle is a key participant in the Nueces River Authority's (NRA) Water for South Texas project, a proposed 100 MGD seawater desalination plant on Harbor Island. NRA Executive Director John Byram noted that the project is being delivered via a public-private partnership with IDE Technologies, which will finance, design, build, and operate the plant. Kyle paid a $273,000 initial reservation fee for 10 MGD of capacity in October 2025, and a second payment is due at the end of October 2026. IDE representative Mark Ellison stated that the pipeline is expected to deliver water to the Kyle region by 2032.

The city is also evaluating a memorandum of understanding with the Guadalupe-Blanco River Authority (GBRA) for up to 10 MGD from its Water Secure regional program. GBRA's Charlie Hickman detailed the $6 billion infrastructure strategy, which includes an off-channel reservoir, a 96-inch transmission pipeline, and aquifer storage and recovery (ASR). GBRA intends to issue notices to proceed to participating municipalities in the spring of 2027, utilizing 40-year SWIFT financing to defer debt impacts.

Finally, to maximize its locally controlled resources, Kyle is advancing plans for an indirect/direct potable reuse (IPR/DPR) facility to capture treated wastewater currently discharged into Plum Creek. Assistant Director of Water Utilities Tim Sanford noted that a conceptual 3 MGD reuse facility would cost approximately $143 million, with construction beginning no earlier than 2031. The city council is scheduled to approve a $500,000 feasibility study with Carolla Engineering in October 2026 to begin the 8-to-10-year regulatory and design process.

This summary was generated by AI based on the source document and may contain errors.

Source: City Council Special - Sep 10, 2026, City of Kyle