Texas Water Code - WATER § 16.356. Use of Revenue From Operation of Water Supply or Sewer Service Projects

(a) A political subdivision that receives financial assistance from the economically distressed areas program under Subchapter K, Chapter 17,  1 may not use any revenue received from fees collected from a water supply or sewer service constructed in whole or in part from funds from the economically distressed areas program account for purposes other than utility purposes. The annual financial statement prepared by a municipality under Section 103.001, Local Government Code, must include a specific report on compliance with this section.

(b) At the request of the board or on the attorney general's own initiative, the attorney general may file suit to enjoin an actual or threatened violation of this section.