PILLAR: Sustainable
AGENDA DATE: September 23, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Dallas Water Utilities Department
PRIORITY: Infrastructure
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SUBJECT
Title
Authorize an Interlocal Agreement between the City of Dallas, Tarrant Regional Water District, and the North Texas Municipal Water District for Regional Water Supply Cooperation and Interconnectivity - Financing: No cost consideration to the City
*In alignment with Long Range Water Supply Plan.
Body
BACKGROUND
The City of Dallas (Dallas) and the North Central Texas region are experiencing rapid business and population growth with accompanying increased demands for municipal and industrial water supplies. Dallas’ Long Range Water Supply Plan since the drought of the 1950’s has guided Dallas to develop a diverse water supply system. Tarrant Regional Water District (TRWD) and the North Texas Municipal Water District (NTMWD) have also developed diverse water supply systems to meet the needs of their respective service areas. Although Dallas, NTMWD, and TRWD service areas are adjacent, the water supply and raw water transmission systems are not interconnected and are operated independently, with very few exceptions.
Due to the unique geographical, hydrological, climatic, and geological characteristics of Dallas, TRWD, and NTMWD water supplies, joint system operation has the potential to generate additional water supply for the region. Regional water supply cooperation and proactive planning can reduce costs to customers, extend existing water supplies, utilize temporary surplus water and infrastructure capacity, and defer the need for costly capital projects.
This action will authorize an interlocal agreement between Dallas, TRWD, and NTMWD to advance regional water supply cooperation and interconnectivity. Each provider’s water supply systems and strategies have expanded over the years to increasingly overlap and present opportunities for greater coordination and collaboration. The 2026 Region C Water Plan and the 2027 State Water Plan, like prior versions of these plans, identify multiple joint water management strategies involving each provider, including projects related to Marvin Nichols Reservoir, Marvin Nichols with Wright Patman Reallocation, Toledo Bend Reservoir, and reuse initiatives, demonstrating a shared regional approach.
The main purpose of this agreement is to establish a regional cooperation framework to enhance the reliability, resiliency, and cost-effectiveness of water supply in North Central Texas. The agreement will facilitate:
• strategic planning and development of water supplies,
• optimization of existing infrastructure,
• sharing, purchase, and sale of water and capacity, and
• future agreements that maximize the value of existing and planned assets while meeting long-term regional needs.
In addition, the agreement identifies potential areas for cooperation including raw water transactions, treated water interconnections, reuse water utilization, storage partnerships, and other water collaboration efforts. The agreement also sets the foundation for establishing a Joint Coordination Group consisting of representatives from each entity to:
• share planning data and information,
• evaluate projects and transactions,
• coordinate timing and implementation, and
• develop recommendations.
Over the years, Dallas, TRWD, and NTMWD have demonstrated a history of cooperation on regional water supply projects and initiatives. A continued commitment for cooperation and planning will build upon successful projects and initiatives like the Integrated Pipeline Project, regional water conservation initiatives, existing transport, exchange, and purchase agreements, the Regional Optimization Study, and longstanding campaigns and planning efforts. It will also support each entity’s common mission to support regional growth, economic development, and quality of life.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
Information about this item was provided to the Transportation and Infrastructure Committee on September 14, 2026.
FISCAL INFORMATION
No cost consideration to the City.
OWNER/EXECUTIVES
Tarrant Regional Water District
Dan Buhman, General Manager
North Texas Municipal Water District
Jenna Covington, P.E., Executive Director