BROWNSVILLE, TX — The City of Brownsville has approved a Memorandum of Understanding (MOU) that is expected to provide up to $220 million for water and wastewater infrastructure projects designed to increase water availability in Brownsville and Cameron County.
During the special meeting held Saturday, August 29, at City Hall, the Brownsville City Commission also approved on second and final reading Ordinance No. 2026-1823, disannexing approximately 444.45 acres, along with adjacent right-of-way, from the City’s corporate and extraterritorial jurisdiction (ETJ) boundaries. The property is located in Cameron County and is in the ordinance as part of Tract A, Share 7 of the San Martin Grant.
The MOU, between the City and SpaceX for the benefit of the Brownsville Public Utilities Board (BPUB) and Southmost Regional Water Authority (SWRA), provides for an initial $40 million escrow contribution followed by six quarterly payments of $30 million, for a maximum contribution of $220 million. Funding will be restricted to qualifying water and wastewater projects and released as project milestones are met. The agreement does not constitute a purchase of water capacity, an ownership interest or a prepayment of utility rates.
Projects identified under the agreement include potable reuse and wastewater reclamation capable of increasing water supply by approximately 8 million gallons per day, as well as an SRWA plant expansion capable of increasing supply by approximately 10 million gallons per day.
BPUB is seeking to increase SRWA production from 7.5 million gallons per day to 10 million gallons per day, with a long-term goal of reaching 20 million gallons per day. The initial optimization is estimated at approximately $46.8 million, while the potential 20-million-gallon-per-day expansion is estimated at approximately $202 million.
“Brownsville is growing, and we have a responsibility to make sure our infrastructure grows with it,” said Mayor John Cowen Jr., City of Brownsville. “Increasing our water capacity is an investment in the future of our residents, our businesses and the generations that will call Brownsville home.”
The additional water capacity is expected to strengthen the community’s long-term water supply, support residential and economic growth, and provide greater resilience as demand increases. The investment also creates an opportunity to leverage private-sector funding for critical infrastructure that serves a broader community purpose.
“Water is fundamental to Brownsville’s future,” Cowen said. “This agreement gives us an opportunity to make a significant investment in a resource that will help us responsibly plan for growth and continue building a stronger community.”
The City will work with BPUB and other stakeholders on the identification, development and implementation of qualifying projects under the MOU. Projects remain subject to applicable engineering, permitting, legal and milestone requirements.
