San Antonio City Council to Vote on Guajolote Ranch MUD Application

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The San Antonio City Council is expected to vote on Thursday on whether to approve the creation of a municipal utility district (MUD) for the planned Guajolote Ranch development, which would bring around 3,000 homes to 1,100 acres in northwest Bexar County. The development has faced over a year of community opposition, particularly over its wastewater treatment plant that was approved by the Texas Commission on Environmental Quality (TCEQ) despite concerns it would be built over the Helotes Creek watershed, which supplies San Antonio's drinking water. Opponents have sued TCEQ over the wastewater permit approval and are expected to hold a press conference following the council's vote.

Why it matters

The Guajolote Ranch development has been a contentious issue in San Antonio due to concerns over its potential environmental impact on the local water supply. The city council's decision on the MUD application will be a key step in determining whether the project moves forward, and the outcome could have significant implications for growth and development in the region.

The details

The MUD would establish a separate political entity to issue bonds and levy taxes to fund the development's utility infrastructure, including water, wastewater and drainage. Since Guajolote Ranch is located in San Antonio's extraterritorial jurisdiction, the city must formally consent to the creation of the MUD. If the council votes against the MUD, the developer could return to TCEQ to seek reconsideration of the approval. Supporters of MUDs argue they can speed up infrastructure in underserved areas and shift costs away from the city, while critics point to higher property taxes and fees for homeowners, as well as potential long-term pressures on nearby governments.

• The San Antonio City Council is expected to vote on the Guajolote Ranch MUD application on Thursday, February 5, 2026.
• In October 2025, the Texas Commission on Environmental Quality (TCEQ) approved the wastewater treatment plant permit for the Guajolote Ranch development.
• In late December 2025, the San Antonio City Council held a special session to discuss the MUD approval, with at least six council members signaling opposition to the development.
• On January 21, 2026, opponents of the Guajolote Ranch development sued TCEQ, challenging the approved wastewater permit and seeking judicial review.

What’s next

The judge in the case will decide on whether to allow the opponents' lawsuit against TCEQ to proceed, which could further delay or impact the Guajolote Ranch development.