Texas Special District Local Laws Code - SDLL § 11005.154. District Authority to Contract to Supply Water

(a) The district may contract with municipalities and others, including the city, to supply water to them. The district may sell water inside or outside the boundaries of the district.

(b) The district may contract with a public agency or political subdivision for the rental or leasing of or for the operation of the water production, water supply, water filtration or purification, and water supply facilities of the entity on the consideration agreed to by the district and the entity.

(c) A contract under Subsection (a) or (b) may:

(d) The district may contract with the city for the operation of the district's water facilities by the city. An election is not required in connection with the contract. (Acts 63rd Leg., R.S., Ch. 619, Secs. 9(a) (part), 19.)