A municipal utility district is a type of special authority that offers sewage and water services (MUDs).
One of the many different kinds of special districts that operate as independent, constrained governments is a Municipal Utility District (MUD). A MUD's function is to give a developer an alternative method of financing infrastructure, such as roads, sewage systems, and drainage systems. A MUD may be established by either the Texas Legislature adopted a district creation bill or the Texas Commission on Environmental Quality (TCEQ) after a petition and consent procedure. The Texas Water Code describes.
For property inside the City's boundaries to be covered by Prior to formation, MUD, City approval is necessary as part of the TCEQ procedure. There are restrictions to what the City might want as a prerequisite for approval, particularly for MUDs that don't plan to join the water or sewage systems of the city.
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