North Texas Explores Millwood Lake Water Purchase
The North Texas Municipal Water District is considering buying excess water from an Arkansas reservoir to meet future supply needs.
Updated on Nov. 2, 2026 in Utilities
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The North Texas Municipal Water District, which serves 2.4 million people, has held initial informal talks with Heartland Water Partners about purchasing excess water from Millwood Lake in Arkansas. Formal contract terms have not yet been discussed.
Why it matters
The district's service area is growing rapidly, and its board has passed a resolution to explore additional water supply opportunities. Excess surface water is often released from reservoirs and eventually flows into the Gulf, making an interstate purchase a potential alternative.
The district serves 2.4 million people across more than 70 communities and 2,200 square miles, and could receive up to 110 million gallons per day from Millwood Lake. The proposed purchase has not yet secured required Arkansas approvals, and the delivery point remains undetermined.
The players
North Texas Municipal Water District
A regional wholesale water, wastewater and solid waste utility serving 2.4 million people across North Texas.
Heartland Water Partners
A portfolio company of Dallas-based private equity firm Grey Rock Investment Partners that has been granted exclusive access to excess Millwood Lake water.
The details
Heartland Water Partners, a portfolio company of Dallas-based Grey Rock Investment Partners, was recently granted exclusive access to excess Millwood Lake water if the interstate sale receives required approvals. Texarkana's board approved the first step toward potentially transporting its Millwood Lake water.
Timeline
October 22, 2025: NTMWD's board passed a resolution to entertain additional water supply opportunities.
Late October 2025: Texarkana's board approved the first step toward transporting Millwood Lake water.
2080: NTMWD's service area is expected to double in population.
Utilities Outlook
The district's pursuit of interstate water aligns with the Texas State Water Plan, which projects NTMWD will need more than 400,000 acre-feet of new supply by 2080. The plan's projections underscore why regional utilities are looking beyond their existing reservoirs for long-term capacity.
Customers of member communities may eventually see changes in regional water supply capacity if the interstate purchase is approved. The current proposal faces required Arkansas approvals and has no finalized contract or delivery point.
The takeaway
Long-term water planning in fast-growing Texas regions increasingly depends on securing supply beyond existing reservoirs. Watch for Arkansas approval steps as the proposal moves forward.
Further reading
Explore more Texas Utilities coverage on water supply and infrastructure planning across the state.
Source note: This article includes information reported by The Dallas Morning News.
Live Poll
Should North Texas cities buy water from Arkansas to meet growing demand?
