Corpus Christi Taps Future Bonds to Fund Water Projects

Texas city aims to address looming water crisis with brackish water treatment and groundwater projects

Published on Feb. 22, 2026

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The city council in Corpus Christi, Texas, passed a resolution establishing its intent to use proceeds from the future issuance of up to $410 million of water revenue bonds to reimburse cash-on-hand expenditures for water supply projects that will treat brackish water and tap groundwater. The city is facing a looming water crisis due to drought conditions and depleting reservoirs, prompting the need for new water sources.

Why it matters

Corpus Christi has been hit with negative rating actions from major credit agencies over its water supply issues, raising concerns about the city's ability to finance solutions. The city's move to tap future bond proceeds signals its urgency to address the water crisis before supply fails to meet demand.

The details

The $175 million brackish water treatment plant project is expected to deliver 3.91 million gallons of treated water daily in 11 months, rising to 21.3 million gallons per day in two years. The city also approved $38 million for groundwater rights and $197 million in contracts for the Evangeline Groundwater Project, which faces a potential legal challenge. Some council members raised concerns over the escalating costs of the city's water supply efforts.

  • The city council passed the resolution establishing its intent to use future bond proceeds on February 18, 2026.
  • A Level 1 water emergency, indicating the system is 180 days from supply not meeting demand, is projected for November 2027.
  • The $175 million brackish water treatment plant project is expected to deliver 3.91 million gallons of treated water daily in 11 months, rising to 21.3 million gallons per day in two years.

The players

Corpus Christi Water

The primary water supplier for a seven-county region in Texas.

Carolyn Vaughn

A Corpus Christi city council member who raised concerns over the escalating costs of the city's water supply efforts.

Nick Winkelmann

The chief operating officer of Corpus Christi Water, who said the city will "end up with a diversified water supply that this community can count on going forward."

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What they’re saying

“This is a lot of money that we're spending, and I'm really fearful that we're going to bankrupt the city. What's going to happen when it rains? And we will get rain eventually, we always do, and it fills our reservoir. Who's going to pay for all these alternative supplies?”

— Carolyn Vaughn, Corpus Christi City Council Member (The Bond Buyer)

“We will end up with a diversified water supply that this community can count on going forward.”

— Nick Winkelmann, Chief Operating Officer, Corpus Christi Water (The Bond Buyer)

What’s next

An inner harbor seawater desalination project is coming back to the Corpus Christi city council for consideration next week, according to the agenda posted for the February 24 meeting.

The takeaway

Corpus Christi's move to tap future bond proceeds to finance water supply projects underscores the urgency of addressing its looming water crisis, as the city faces the risk of depleted reservoirs and potential supply shortfalls. The city's efforts to diversify its water sources, including brackish water treatment and groundwater projects, aim to build a more resilient water system, but the escalating costs have raised concerns among some city council members.