Can Your Raw Land Be Served? How to Check Water and Sewer Before You Commit

Before you buy raw land, confirm in writing how water and sewer will reach it and what that will cost. A nearby pipe is not a service plan, and the answer can change a deal that looks cheap on paper. This recap covers what we told developers, civil firms and utilities on our Live Show.

Why is a nearby pipe not enough to serve my land?

A pipe at the property line does not mean the system has capacity for your project. Capacity problems often show up only after you have started drawing lots.

A client recently found 30 acres near DFW for $3 million and called it a deal. It depends on what the land needs to be served.

Checking the CCN map on the PUC website is a good first step. If you sit inside a CCN area, the provider has a legal obligation to serve you.

That obligation does not say who pays. You may end up responsible for the infrastructure improvements the provider needs to serve your site.

What does a utility feasibility study find?

It tells you whether the provider can serve you and what you must fund. A large Texas supplier can charge roughly $2,000 to $10,000 for the study.

The results vary widely. We have seen half-million-dollar water tank improvement credits, a provider that had to buy water rights and passed on the legal fees, and lines that had to be upsized.

Sometimes there is nothing at all, and the answer is simply to sign up.

We have also seen a quote of $3 million to connect, or a wait of 12 months before the provider would consider the upgrade.

Site layout matters too. If the sewer is at the road and your site drains toward a floodplain, you may need a lift station that can run to a million dollars.

What if the utility cost is too high or the answer is no?

You can serve yourself. On sewer, the rule of thumb we shared is that a provider cost near 10% of your total project cost may let you go to TCEQ and ask to build your own plant within their boundaries.

Containerized MBR plants are modular. A growing development can add containers over time, up to nine, instead of pouring large concrete basins up front.

On water, you may be able to set up your own public water system. Options include a groundwater well, depending on your groundwater district and aquifer, or rainwater harvesting for low-demand commercial sites with large roofs.

Expect six to 12 months to work through those details.

Fire supply is a separate problem. In our example, a 1,500 gallon per minute, two-hour fire flow means a 120,000 gallon tank, filled by haul-in, an irrigation well or a retention pond.

Whose money is at risk in the agreement?

Check who builds the mains, what easements you must give up, and whether tanks, treatment and connection fees are all spelled out.

Ask whether you pay connection fees now or as each building is built. Deferring costs and tying them to future sales is usually better for your model.

Clarify where ownership stops. Some utilities want a master meter and valving with you owning everything on site. Others want 25 foot easements across your land.

If you self-serve, model the operating costs. Operators for a water and wastewater system together run roughly a couple thousand dollars per month.

Energy varies by plant type. A mechanical plant can use about triple the energy of an extended duration plant and needs more part replacement. Plan for the HOA, MUD or owner who will take it over.

How do I make a request that gets a useful answer?

Bring a tract map showing exactly what you will subdivide or build, and show the phasing. Clear requests get clearer answers.

Have your engineer calculate water and sewer demand before you go to the utility. Their models may use different calculations and push your tap size up.

On a 250,000 square foot warehouse site, the utility's figure was about 50 LUEs. We got it down to 18, saving roughly $300,000 in tap fees, since many buildings were shells.

Take the same concept plan to the fire authority. Buildings over 12,000 square feet typically need sprinklers, which can add a couple hundred thousand dollars.

If the water system cannot support fire flow, NFPA 1142 sizes the tank by building area instead. In our example that is about 32,000 to almost 90,000 gallons. For developers, our services for developers and builders cover this early work.

Watch the full episode

The full episode is on YouTube: https://www.youtube.com/watch?v=JdVzCuFTa6w

Frequently asked questions

What is a CCN?

A CCN is the service area where a provider holds a legal obligation to serve. You can look it up on the PUC website. It does not say who pays for upgrades.

How much does a utility feasibility study cost?

For a large Texas supplier, roughly $2,000 to $10,000. The results can range from no cost to a tank credit near half a million dollars or more.

Can I build my own water system if the utility cannot serve me?

Possibly. Options include a groundwater well or rainwater harvesting, depending on your area. Expect six to 12 months, and fire supply still needs its own plan.

I'm a developer in Texas looking at 10 acres of commercial land and the water company wants $2 million. What should I check first?

Compare the cost to your total project cost, then ask what the money buys. If it is far too high, look at self-service options. We have seen deals die over this, so get the answer before committing.

I'm a civil engineer drawing lots around a connection the utility has not confirmed. Should I keep going?

We would not start the layout yet. An unconfirmed connection can change the layout completely, so get the capacity and terms confirmed first.

I run a small utility and developers want to connect. How do I protect existing customers in the agreement?

Use the agreement to settle who builds, who owns, which easements apply and how fees are paid, so new connections pay a fair share of the infrastructure.

Related Resources

• When does a Texas development need a municipal utility district (MUD), and what comes before the TCEQ petition?
• Impact Fees and CIP Timing: Why Phasing Costs Blindside Developers When the Capital Improvement Plan Schedule Does Not Match Their Build Out
• Austin Water Service Extension Requests: Who Pays for Off Site Water, Wastewater, and Reclaimed Water Improvements?

Not sure your land can be served?

Send us the site and we will help work out the water and sewer requirements, the likely costs and the best path before you commit.

We specialize in:

• Water and sewer feasibility review
• Utility demand and tap size calculations
• Fire protection water supply planning
• Wastewater treatment plant design
• Site civil engineering for land development

Modern Engineering Solutions, McKinney, Texas. Contact: (214) 833-6748 or mod-eng.com