NADBank Approves $164 Million for Rio Grande Valley Water
Twelve water infrastructure projects spanning Hidalgo and Cameron counties received board approval in McAllen on Thursday.
Updated on Nov. 6, 2026 in Utilities
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The North American Development Bank approved 12 water-related infrastructure projects totaling $164 million in the Rio Grande Valley, holding its first-ever meeting in the region on Thursday. The funding was first announced at the bank's annual meeting in August in San Antonio and became official when the board voted in McAllen.
Why it matters
The Rio Grande Valley has struggled to secure enough water amid prolonged drought, growth, and missed water payments from Mexico under a 1944 international water treaty. The projects are intended to strengthen the region's long-term water supply for residents and local irrigation districts.
NADBank approved $164 million for 12 water projects, which are expected to conserve nearly 44,000 acre-feet of water per year. One project spanning Hidalgo and Cameron counties alone could save 17,000 acre-feet annually.
The players
North American Development Bank (NADBank)
A binational institution that finances environmental infrastructure projects along the U.S.-Mexico border.
Texas Water Development Board
The state agency that funds and plans water supply projects across Texas, and a partner in financing these projects.
The details
The projects span from western Hidalgo County to eastern Cameron County and involve local irrigation districts. Funding comes from NADBank, the Texas Water Development Board, and other private and public partners.
Timeline
August 2026: NADBank's annual meeting in San Antonio first announced the $164 million.
Thursday, November 5, 2026: The bank's board voted to officially approve the funding in McAllen.
Roadmap
The approvals respond directly to the unpaid water obligations Mexico still owes under the 1944 International Water Treaty, with over 800,000 acre-feet of past-due water remaining from the five-year period that ended in October 2025. The projects shift part of the burden onto local infrastructure investment rather than relying solely on treaty deliveries.
Residents served by local irrigation districts and municipal systems in Hidalgo and Cameron counties could see improved water reliability as projects come online. The projects are expected to supply the drinking water of nearly 300,000 Rio Grande Valley residents every year.
The takeaway
Regional water security in the Rio Grande Valley depends on both local infrastructure investment and resolving international water delivery obligations. Residents and local water managers should track project timelines as funding moves from approval to construction.
Further reading
For more on how regional providers are planning supply, see Utilities coverage.
Source note: This article includes information reported by BorderReport.
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