El Paso Water inks wholesale deal for 15,000-acre development amid severe capacity constraints

El Paso Water inks wholesale deal for 15,000-acre development amid severe capacity constraintsThe utility has approved a 40-year agreement to supply 1 million gallons per day to the new Iron Point Municipal Utility District, but halted wastewater provisions until a comprehensive master plan by Jacobs Engineering can address regional sewer limits.

The wholesale agreement will provide a peak water demand of 1 million gallons per day for Phase 1 of the Iron Point development, covering 270 acres of a 15,000-acre site.

Jacobs Engineering has been retained to develop a comprehensive master plan to evaluate future water demands, wastewater flows, and infrastructure costs for the rapidly growing area.

Wastewater services are excluded from the current agreement because existing infrastructure capacity in the area has been completely exhausted by other fast-moving projects.

At its May 13, 2026 meeting, the El Paso Water Public Service Board approved a 40-year interim wholesale water supply contract with the Iron Point Municipal Utility District (MUD). The agreement will provide a peak water demand of 1 million gallons per day to support the first phase of a massive development on land formerly owned by Fort Bliss. However, the utility is facing severe infrastructure constraints in the area. While the wholesale agreement covers water supply for the 270-acre Phase 1 site, it explicitly excludes wastewater services. Capital Projects Manager Renata Renova noted that existing water and wastewater infrastructure was not designed to meet the growing demands of the area. "We've exhausted whatever available capacity on our sewer system we had," Renova stated, pointing to three fast-moving developments in the vicinity—SkyPark Phase 1, Advanced Manufacturing Phase 1, and a Police and Fire Complex—that have consumed remaining sewer capacity. To address the shortfall, El Paso Water has retained Jacobs Engineering to develop a comprehensive regional master plan. The firm will evaluate future water demands and wastewater flows, identify necessary infrastructure improvements, and estimate associated costs to serve the entire 15,000-acre unincorporated area over the long term. Future phases of the Iron Point MUD development will require either an amendment to the current wholesale agreement or an entirely new contract once the master plan determines the offsite infrastructure needed to connect the area to the public sewer system. Wholesale water rates for the district will be developed to cover the provision of service and will be adjusted annually during the utility's broader budget and rate-setting process. The 40-year term was requested by the district to help secure financing for the development.