SAN ANTONIO – After more than a year of community opposition and state-level approvals, San Antonio City Council is expected to vote Thursday on whether to approve a key piece of a controversial northwest Bexar County housing development.
The measure up for vote is to establish a municipal utility district (MUD) for Guajolote Ranch, a planned development that will bring roughly 3,000 homes to 1,100 acres of land in northwest Bexar County.
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The meeting and vote on Thursday will be livestreamed in this article, beginning around 9 a.m. Delays are possible; if there is no livestream available, check back at a later time.
The development will also require constructing a wastewater treatment plant, which the Texas Commission on Environmental Quality (TCEQ) approved in October 2025.
Opponents fought the permit because the wastewater treatment facility will be built directly over the Helotes Creek watershed, which supplies San Antonio with its drinking water.
Opponents, with the help of some state lawmakers, called for a rehearing on the permit, but TCEQ denied it.
Following the council’s vote, opponents of the development are expected to hold a press conference. This press conference will also be livestreamed in this story, potentially beginning around 11 a.m. If there is no livestream available, check back at a later time.
Background
In late December, City Council held a special session to discuss the MUD approval. While no vote was taken, at least six council members signaled opposition to the development.
The meeting followed a three-hour-plus San Antonio Planning Commission meeting where, after mostly opposed public comments, the commission voted down the financing model.
Days after the special session, opponents sued TCEQ, challenging the approved permit and seeking judicial review. The suit was filed in a Travis County District Court on Jan. 21.
The 295-page filing suggests the commission’s Oct. 28 permit approval “is the product of numerous errors and must be reversed,” and alleges at least 10 errors are present.
>> Guajolote Ranch opponents sue TCEQ, seek reversal of previously approved wastewater permit
What is a MUD?
A MUD is a different type of financing and governance structure that, if approved, would shape how the project’s infrastructure is built and paid for.
A MUD is a separate political entity that can issue bonds and levy taxes to fund utility infrastructure — commonly water, wastewater and drainage — particularly in areas not served by a city’s utility system.
In this case, Guajolote Ranch is located in San Antonio’s extraterritorial jurisdiction, meaning it is outside city limits but within an area where San Antonio has limited authority.
Therefore, the city must formally consent to the creation of a MUD within its boundaries.
Should the council vote against creating the MUD, city staff said the developer could return to TCEQ for reconsideration of the MUD’s approval.
Potential positives and negatives of a MUD
Supporters of MUDs often argue they can:
- Speed up infrastructure in areas that don’t have water or wastewater service.
- Shift upfront costs away from the city and onto the development’s own tax base.
- Help enable growth where development might not otherwise be feasible.
Critics of MUDs often point to:
- Higher property tax rates for homeowners within the district, plus possible fees.
- A structure that can feel less visible to buyers who focus mainly on a home’s listed price.
- Over time, added pressure on nearby governments for services tied to growth.
The financing discussion is happening alongside continuing debate over the development’s wastewater discharge plans and the broader question of growth near sensitive waterways and recharge zones.
For residents trying to follow along, the key takeaway is simple. A PID and a MUD both fund infrastructure, but they differ in how they’re formed, who oversees them and how taxes and debt are structured.
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