MoCo Water War Leaves Unintended Casualties
8/18/25 – The Montgomery County (MoCo) water war has produced a number of unintended casualties in the last decade. They include:
- Water ratepayers
- Flood victims
- Conroe’s reputation as the fastest growing large city in America
- Developers
- Area infrastructure
- Homeowners living near fault lines
- Neighbors in Harris County
- Groundwater storage capacity to help the area bridge droughts
- Science
Unfortunately, those who profited from excessive groundwater withdrawals aren’t the ones paying the price.
Subsidence problems in southern Montgomery County – once thought to be solved by the San Jacinto River Authority’s (SJRA) Groundwater Reduction Plan (GRP) – have recurred. And despite settlement of a long running lawsuit on 8/14/25, there’s still plenty of hurt to go around.
How It All Started
To comply with the Lone Star Groundwater Conservation District‘s (LSGCD) rules to reduce groundwater pumping in Montgomery County, the San Jacinto River Authority (SJRA) introduced its Groundwater Reduction Plan (GRP) in 2009. The plan addressed the need to ensure adequate water supply for the county’s rapidly growing population using surface water from Lake Conroe.
The LSGCD’s rules, adopted in 2006, mandated a 30% reduction in overall groundwater pumping. In 2010, LSGCD also capped groundwater use, starting in 2016, at 64,000 acre-feet per year.
That gave the SJRA time to sell bonds, complete a half-billion dollar surface-water-treatment plant at Lake Conroe, and build a 55-mile pipeline-distribution system.
Then, the water war erupted.
Defectors Undermine Success
When water rates went up to pay for surface water, the City of Conroe, City of Magnolia, Quadvest, and Woodlands Oaks sued to get out of their GRP contracts. That, in turn, led to:
- Conroe’s nine-year legal battle that made several round trips to the Texas Supreme Court.
- Rate increases on participants still in the plan to make up for shortfalls created by those who left it.
- Legal and fiscal uncertainty that burdened other GRP participants left covering shortfalls caused by the non-paying entities.
- Uncertainty about the ability to service debt on bonds.
- Significant legal fees affecting both sides, including water ratepayers.
Subsidence: Briefly Halted
Ironically, all this happened as the groundwater reduction plan started to reduce subsidence. Areas in The Woodlands that had subsided consistently for years saw subsidence virtually level off. But the success was brief.

The leveling off lasted between three and four years. Then subsidence accelerated again. The trigger this time: politics.
A movement to make the LSGCD board elected rather than appointed opened the door for privately held groundwater providers. They backed a slate of candidates that favored pumping cheaper groundwater. And the groundwater pumpers won. Soon thereafter, unrestricted groundwater pumping resumed.
The newly elected board was sworn in during November, 2018, shortly before the graph above turned down again.
Groundwater Levels Decline with Changes in Groundwater Regulations
The newly elected LSGCD board removed conservation rules from their regulatory plan, leading to a rejection of the plan by the Texas Water Development Board (TWDB). This introduced uncertainty regarding the regulatory framework for groundwater management and the GRP’s role within it.
The protracted legal battles, settled last Thursday, centered on the validity and enforceability of GRP contracts and the fees charged for surface water.
Several cities disputed the SJRA’s ability to raise rates for surface water. Conroe initially refused to pay a rate increase implemented in 2016, and Magnolia followed suit. The SJRA responded by suing the cities for breach of contract.
These legal challenges created significant financial strain for the SJRA and its other customers. Unpaid fees caused shortfalls that had to be covered by other GRP plan participants. The recent settlement has resolved the dispute between SJRA and Conroe. But legal battles may still continue with others.
Meanwhile, southern Montgomery County has experienced the steepest well declines in the entire region.

From 1977 to 2025, maximum water level decline in the Chicot-Evangeline (undifferentiated) aquifer occurred in The Woodlands where water levels fell more than 400 feet. Likewise, water levels in the Jasper aquifer declined more than 250 feet near The Woodlands during the same time period.
Every water well drilled into those aquifers that USGS monitors in Montgomery County with the exception of two experienced significant water-level declines since the LSGCD board became elected. See below.


Clearly, the trend is not sustainable.
Flooding Worsened
As subsidence worsened, so did flooding in many parts of The Woodlands, especially those near streams whose gradients changed and those who lived near down-thrust faults that created bowls in the landscape.
Water Capacity Crunch Led to Development Moratorium
The U.S. Census Bureau rated Conroe the fastest‑growing large city in America for the period from July 1, 2015, to July 1, 2016. However, within several years, Conroe experienced a water-capacity shortfall and imposed a development moratorium (Aug 29, 2024).
TCEQ later approved a temporary reduction in the required water-supply allocation per connection—from 0.60 to 0.46 gpm—so projects could restart under tighter per-lot assumptions. For a year, that pause reportedly stalled plats, permits, and site work citywide.
It even affected large commercial projects. The Conroe Courier reported that Kelsey-Seybold was considering pulling a $24 million medical facility. Construction could not move forward because of concerns about water infrastructure capability.
With the settlement announced last Friday, Conroe has ended the development moratorium for now, but projects must use the TCEQ-approved 0.46 gpm through Feb. 2029. But the City’s plan reviewers will reportedly press for conservation fixtures/phasing until new supply is online.
The Greater Houston Homebuilders Association said the moratorium had had “detrimental effects on every facet of our industry from concrete to roofers, to pools to developers and builders.”
Under the terms of last week’s settlement, SJRA will provide additional water to Conroe. Heather Ramsey of the SJRA said that, “The additional surface water should keep them from using additional groundwater to accommodate their growth.” But in the meantime…
Homes Near Fault Lines Damaged
Deregulation of aquifer groundwater withdrawal in Montgomery County by the LSGCD led to declines in area water wells.
As Conroe and surrounding areas pumped more and more groundwater, subsidence continued. That triggered geologic faults in The Woodlands, which damaged homes.


It also damaged infrastructure.

Two subsidence experts in The Woodlands gave me a tour of three fault lines. Street after street showed dips, cracks, and storm sewer damage aligned precisely with the fault lines. Some of the repairs reportedly cost hundreds of thousands of dollars.
Many Paid the Price
Excessive groundwater withdrawals are also tilting Lake Houston. The area near the dam is subsiding much slower than the area in the headwaters of the Lake near the Montgomery County Line.
I listed science as the last victim in the water war. At some point during this skirmish, subsidence deniers started trotting out their own studies claiming huge volumes of water from the aquifers above could be produced without adverse consequences.
The loss of groundwater storage capacity due to subsidence will also leave Montgomery County more vulnerable to future droughts. Groundwater backs up surface water supplies. And now there will be less groundwater storage volume.
Someday, this will become a cautionary case study for other areas that think of groundwater as an unlimited resource.
Posted by Bob Rehak on 8/19/25
2912 Days since Hurricane Harvey
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