Texas Water Development Board approves $19,014,647 to the City of Mercedes (Hidalgo County) for water system improvements

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

AUSTIN – (March 31, 2026) – The Texas Water Development Board (TWDB) today approved by resolution financial assistance in the amount of $19,014,647 to the City of Mercedes (Hidalgo County), consisting of $11,780,000 in financing and $7,234,647 in principal forgiveness from the Drinking Water State Revolving Fund (DWSRF). The City will use the assistance for the planning, design, and construction of water system improvements.

In addition to the principal forgiveness, the City could save approximately $2,400,000 over the life of the loan by using the DWSRF.

With the assistance approved today, the City will add a new multi-disc screw press, in-line groundwater well filtration system, raw water intake screens, backwash pumps, a generator, and a sludge thickener clarifier. The City also proposes rehabilitating the plant’s catwalk and making surface repairs for three clearwells. The City will also rehabilitate its elevated storage tank with replacements to both external and internal structures, along with recoating and replacement of warning lights for aircraft. Improvements to the distribution system include replacement of 3,080 feet of 16-inch water main, 4,750 feet of 12-inch water main, and the addition of 2,000 feet of new water distribution lines.

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.