Exempt Groundwater Wells in Texas: What Landowners Need to Know
By Trey Wilson, Real Estate and Water Law Attorney | San Antonio, TX
If you’re a Texas landowner with access to groundwater, you may have heard the term “exempt well.” But what does it really mean? And how does it affect your legal rights, your obligations, and your property’s value?
What Is an Exempt Well?
Under Chapter 36 of the Texas Water Code, which governs groundwater in Texas, as well as the Groundwater Conservation Districts (GCDs) that regulate it on a local level, certain water wells are considered “exempt” from permitting requirements. These exemptions are detailed in §36.117 of the Texas Water Code.
Exempt wells typically include:
- Wells used solely for domestic or livestock purposes
- Wells on tracts of land larger than 10 acres
- Wells that are equipped to produce a capacity of less than 25,000 gallons per day (17.36 gpm)
These wells are generally not required to obtain a formal permit from the GCD. But the term “exempt” can be misleading—because many of these wells still require registration and compliance with local rules.
GCD Authority and Local Variation
Even for exempt wells, most GCDs require registration before drilling or operating. Districts may also impose:
- Spacing requirements between wells
- Reporting obligations (especially during drought)
- Metering or capping requirements to enforce usage limits
Because GCD boundaries don’t align perfectly with county lines, landowners must check the applicable local district to ascertain regulatory control over their ability to produce groundwater. Some are districts include:
- Edwards Aquifer Authority (South Central TX)
- Plum Creek Conservation District (Hays/Caldwell Counties)
- Evergreen Underground Water Conservation District (Wilson, Karnes, Atascosa)
- Guadalupe County Groundwater Conservation District
- Trinity Glen Rose Groundwater Conservation District
- Barton Springs Edwards Aquifer Conservation District
- Evergreen Underground Water Conservation District
Real Estate Implications
Exempt wells can be a valuable asset in a real estate transaction—but only if the buyer understands the well’s regulatory status. Landowners, title companies, engineers, and attorneys should confirm:
- Whether the well is truly exempt under current law
- If it was properly registered with the GCD
- Whether any historical violations exist
- Any usage or structural limitations recorded against the deed
Buyers should beware: a non-permitted well built without GCD approval may not be grandfathered—and may even be subject to fines or shutoff orders.
Exempt Doesn’t Mean Untouchable
Some landowners assume “exempt” means “you can’t regulate me.” Not true. GCDs still have broad enforcement powers, including:
- Inspections for compliance
- Cease-and-desist letters
- Authority to order wells to be capped or removed
- Ability to seek judicial or legal remedies such as injunctions
- Referral to the Texas Commission on Environmental Quality (TCEQ)
Moreover, exempt status may not shield a well owner from legal claims by neighbors—especially in areas where excessive drawdown causes interference or damage.
Conclusion
Texas landowners enjoy broad rights under the Rule of Capture, but those rights are increasingly shaped by conservation policies and local enforcement. If you’re relying on a water well—especially one labeled “exempt”—it pays to know the law and work with professionals who understand the regulatory terrain.
About the Author
Trey Wilson is a San Antonio-based attorney with more than 25 years of experience in real estate and water law. He advises landowners, water utilities, developers, and groundwater users throughout Texas on well permitting, enforcement disputes, and property transactions. He also negotiates and drafts groundwater lease agreements.
