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Texas Water Newsroom

Texas Water Development Board approves $198,450,000 to the City of McAllen (Hidalgo County) for water system improvements and acquisition of water rights

For immediate release. Contact: Media Relations at 512-463-5129

AUSTIN – (July 24, 2025) – The Texas Water Development Board (TWDB) today approved by resolution financial assistance in the amount of $198,450,000 from the State Water Implementation Fund for Texas (SWIFT)* to the City of McAllen (Hidalgo County) including

  • $195,235,000 for the planning, design, and construction of a water system improvements project and
  • $3,215,000 for acquisition of water rights.

The City could save approximately $2,700,000 over the life of the loan by using the SWIFT program.

With the assistance approved today, the City will plan, design, and construct a brackish groundwater desalination plant and associated infrastructure at the North Water Treatment Plant. The project includes the development of a groundwater well field consisting of two deep wells and four shallow wells, along with approximately 8,500 linear feet of raw and finished water transmission lines, ground storage, electrical and control systems, and system enhancements. The City also will acquire surface water rights from the Hidalgo County Irrigation District No. 1 to expand the City’s available water supply.

The TWDB is the state agency charged with collecting and disseminating water-related data, assisting with regional water and flood planning, and preparing the state water and flood plans. The TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood mitigation, and agricultural water conservation projects.

*The SWIFT program includes two funds, the State Water Implementation Fund for Texas (SWIFT) and the State Water Implementation Revenue Fund for Texas (SWIRFT). Revenue bonds for the program are issued through SWIRFT.