What is a MUD?

A Municipal Utility District, like a school district, is a governmental entity created under Texas State law. As a public entity, it can exercise certain governmental powers, including the levy and collection of property taxes, charging for authorized services, the issuance of bonds for water and sewer facilities, and the adoption and enforcement of rules and regulations as appropriate to accomplish the purposes for which the district was created.

A M.U.D.'s primary purpose is to provide water and sewer services within its boundaries. Municipal Utility Districts are also authorized to provide recreation facilities.