Texas Supreme Court Sides with Austin Suburb Dripping Springs

14 April 2025

A long-running wastewater battle that stalled growth in one of Austin’s fastest-growing suburbs may finally be over.

The Texas Supreme Court on Friday sided with the Texas Commission on Environmental Quality in a lawsuit over Dripping Springs’ wastewater permit, clearing the way for the city to more than double its treatment capacity, the Austin Business Journal reported.

The ruling affirms a 2019 TCEQ decision allowing the city to discharge up to 822,500 gallons of treated wastewater per day into Onion Creek, up from the previous 300,000, despite opposition from environmental groups led by Save Our Springs Alliance.

The fight cast a long shadow over development in Dripping Springs, where the city’s wastewater system was nearing 90 percent capacity. The city imposed a since-revoked moratorium on new construction in 2021 and has been turning away new wastewater service applications, especially on the commercial side.

Retailers like H-E-B, which had received approval to double the size of its local store, shelved plans indefinitely pending the court’s decision.

Design and construction plans for the expanded South Regional Wastewater System are ready to go, said Deputy City Administrator Ginger Faught. The city has also signed contracts with developers to use treated effluent for irrigation and expects to open more capacity for future housing and retail projects.

The ruling also grants the city greater flexibility under a discharge permit rather than a land application permit, allowing treated wastewater to be reused more efficiently without requiring frequent amendments.

Environmental groups still have the option to request a rehearing, but city officials say the judge’s decision represents a turning point.

Dripping Springs grew by more than 20 percent last year and now counts over 8,700 residents. With demand for housing and services surging, the ruling could unlock years of pent-up development and give the city a competitive edge in attracting retailers who previously opted for suburbs with fewer permitting hurdles.

— Judah Duke