On November 4, 2025, Texans will vote on Proposition 4, a constitutional amendment that would dedicate part of the existing state sales and use tax revenue to the Texas Water Fund—the statewide fund voters created in 2023 to finance water supply and infrastructure projects.

What Prop 4 actually does (key facts)

How much & from where: Each fiscal year, the state comptroller must deposit up to $1 billion into the Texas Water Fund—from sales/use tax collections that exceed the first $46.5 billion that come into the treasury that year. This is a dedication of existing revenue, not a tax-rate change in the amendment text.

When it starts / how long it lasts: The dedication takes effect September 1, 2027, and the comptroller’s duty to make these deposits expires August 31, 2047 (a 20-year window).

Governance & guardrails: Deposited money is kept in a separate account and can be moved only by legislative appropriation; allocations can be temporarily suspended during a declared disaster through specific processes.

Use constraints: Funds may not be transferred to build pipelines that transport non-brackish groundwater, with limited exceptions (e.g., certain aquifer storage projects).

What this means for Austin-bound companies

Infrastructure reliability for growth

Central Texas’s rapid expansion puts stress on water supply and delivery systems. Prop 4 would give utilities a predictable, multi-year funding runway to modernize plants, diversify supplies, and tackle bottlenecks— reducing the risk of water-related delays for facility buildouts and operations over the next decade.

Signal to long-term investors

A constitutional dedication is a strong policy signal: Texas is prioritizing water— the base layer of economic development. That can support site-selection confidence and long-range capital planning.

Timing matters

Because deposits begin in FY 2027, near-term projects may not feel immediate benefits; but 5- to 10-year horizons could align with funded buildouts and matching-grant cycles through TWDB.

Budget trade-offs to watch

Dedicated revenue can reduce general-revenue flexibility. Keep an eye on how earmarking interacts with other incentive programs and workforce or infrastructure appropriations that may matter to your relocation package.

Practical takeaways for your relocation plan

Include water due diligence early

In site selection, assess each candidate municipality/utility’s capital plan, TWDB alignment, and readiness to pursue Water Fund-supported projects.

Plan for permitting & phasing

Build 2027–2047 windows into long-range facilities planning; design contingencies for drought stages and regional supply diversification.

Coordinate with local partners

Success will vary by region and project maturity. Work with utilities, EDCs, and TWDB-aware engineers to position your project for funding and schedule certainty.

How I can help (20 years in Austin CRE)

As a business consultant with 20+ years in Austin commercial real estate, I help companies de-risk moves and expansions by stitching together the infrastructure picture, incentives, and timeline reality:

• Site-readiness audits (water capacity, capital plans, and TWDB pathways)

• Relocation strategy with timeline modeling around the 2027– 2047 funding window

• Introductions & advocacy with utilities, cities, and regional partners.

Let’s set up a consultation to align your relocation shortlist with Proposition 4’s opportunities and Austin’s fastest-growing submarkets—ensuring your move is supported by the infrastructure your business needs to thrive.

Sources

• Ballotpedia: Overview of Texas Prop 4 (2025) and statewide ballot context. Ballotpedia

• Texas Secretary of State: Official November 4, 2025, constitutional amendment election information. Texas Secretary of State

• HJR 7 (Enrolled text): Dedication formula ($1B cap; $46.5B threshold), effective date, sunset, separate account/appropriation, disaster suspension, non-brackish groundwater limit. Capitol Texas

• Texas Water Development Board: Texas Water Fund background and program uses.