The future challenges facing Texas' water infrastructure and potential solutions are the focus of a new report titled "Foundation for Economic Growth: Assessing Texas’ Water Infrastructure Needs." This report was produced by the Center for Energy Studies at Rice University’s Baker Institute and commissioned by the nonprofit organization Texas 2036.

According to a press release from Texas 2036, the analysis suggests that the continued success of Texas' economy relies heavily on the reliability of its water infrastructure. The report indicates that successful investments in state and local water infrastructure have contributed to growth in several key economic sectors.

Texas 2036 has proposed that discussions regarding the state's water future be included in the upcoming 89th Texas legislative session. "By making smart, targeted investments today, Texas can secure its water future, safeguard its economy, and set a global standard for water resilience in the 21st century," said Gabriel Collins, Baker Botts Fellow in Energy and Environmental Regulatory Affairs at the Baker Institute.

The report highlights several financial considerations: $2 billion is currently lost annually due to leakage from utility systems; $40 billion could be the potential annual economic damage to large surface-water-dependent municipalities if a multi-year drought occurs; and an effective "insurance rate" of 0.2% in water supply investments is needed to protect Texas' $2.5 trillion economy.