Austin Water is considering new requirements for the city’s largest commercial and industrial water users, including conservation plans, annual reports and limits on how much water they can use. The proposals were presented at a community open house Oct. 5 at the city’s Permitting and Development Center. Under a draft definition, a “high-impact water user” would be a commercial building or group of buildings—including industrial and manufacturing facilities—that uses or is projected to use more than 85 million gallons annually. The total would include drinking and non-drinking water. Customers that exceed a proposed water budget could face higher rates. Austin Water is also considering requiring users to update conservation plans every five years and set five- and 10-year conservation goals. The measures are under consideration, not yet adopted. “We’re really seeking our community input and feedback on some new policies and procedures that we’re considering for high-impact water users,” Austin Water Director Shay Ralls Roalson told attendees. The city’s review follows a July City Council resolution addressing the effects of large water users on the utility. City Manager T.C. Broadnax is due to present recommendations to the council’s Climate, Water, Environment, and Parks Committee by Dec. 9. Austin Water’s first report on large users’ consumption is due by May 2027. The discussion is unfolding as Austin plans for continued growth and drought, while data centers are being built across Texas. Roalson said the proposals would apply regardless of the type of development, rather than target data centers alone. Austin already requires new commercial and multifamily projects to report planned water use. Developments of at least 250,000 square feet face additional water-reuse requirements. A 2023 city ordinance also requires developers to pay for utility infrastructure costs, a measure intended to keep those expenses from driving up residential customers’ rates. The city says large users could reduce their demand for drinking water by connecting to Austin’s reclaimed water system. Treated wastewater can be reused for uses such as irrigation, toilet flushing and cooling. Austin Water also uses a benchmarking application to assess proposed water use and identify opportunities for conservation, reclaimed water and on-site reuse before construction begins. Roalson said the city has financial practices intended to distribute the costs of water, wastewater and reclaimed-water services equitably among customer classes. At the open house, Austin Water data showed that high-impact commercial customers accounted for 10.2% of the city’s total water use in 2025, compared with 60.1% for residential customers. Some residents said direct consumption figures do not capture the full water demands associated with data centers. Carol Phillips, a Northwest Austin resident, pointed to water used at power plants to generate the electricity that facilities consume—a footprint that is not included in a data center’s direct water use. “How can you even plan this critical infrastructure without knowing every drop you’re using?” Phillips said. Resident Brad Knowles likewise urged the city to consider a data center’s broader water footprint. “We can’t just look at what that one data center itself is requiring,” he said. “We have to look at the total cost of ownership.”