Water Notice: Seller’s Disclosure About Groundwater and Surface Water Rights
In the Commission’s recent Special-Purpose Review by the Sunset Advisory Commission, Sunset directed the Commission to add language to contract forms to provide prospective buyers with relevant information on groundwater and surface water rights associated with a property. To that end, a new Water Notice: Seller’s Disclosure About Groundwater and Surface Water Rights has been created.
Proposed Date: Monday, February 9, 2026
Adopted Date: Monday, May 4, 2026
Go into effect: July 1, 2026
Section 1: Defintions
Texas has explicit definitions of groundwater and surface water that the seller should be aware of.
Surface Water Rights – owned by the state and leased by citizens. Permits are through TCEQ, acre-feet per year, and dependent upon junior or senior status as a water right holder
Inform the seller of the definition of “water well,” particularly “artificial excavation”. A spring is a spring, but a dug spring becomes a well, technically. (Ex: Ozarka “Spring” water, just wells at this point).
The presence of a water well does not guarantee access or rights to water. Property paperwork will confirm if water rights were severed, leased to another entity, the surface owner’s right, or the subsurface owner’s right.
Direct your client to the GCD Database to confirm what regulations may apply to their water well
Section 2: Information Related to Groundwater and Water Wells
Question 2: answered with the GCD Index database
Question 2B: Confirm if there is one or more wells within the property boundaries
2B2: “currently in use” equipped and producing water in some capacity for the site, be it domestic, agriculture, livestock, irrigation, etc.
2B3: “not currently in use” – no equipment or ability for the groundwater to be used. This includes capped, covered, plugged, or abandoned wells
2B4: Use our public map to identify wells located on the property. See the instructions below to find a well’s District ID. To confirm whether the well is permitted and to obtain the number, please call our office at 254-965-6705.
2BD: Water Agreements
Does your seller have a shared well agreement under which they are in a contractual relationship with another landowner, a utility company, or a corporation to provide water to their property?
If an agreement does exist, the paperwork or contract should be included.
This can have lasting repercussions for the property’s access to water, depending on the agreement's details and status.
2BE: Groundwater rights verbiage should be located within the property section of the warranty deed. Groundwater rights can be severed from the surface property and bought and sold just like real property. Make sure your seller or buyer has the appropriate amount of groundwater rights to support a well if one exists on the property. This can save time and potential fines for all parties involved.
Groundwater rights can be determined by contacting MTGCD.
Many GCDs have internal databases that highlight properties or developments where groundwater rights are active.
Some areas in Texas have entire areas where groundwater rights were bought by outside entities and leased to others (Ex, Post Oak Savannah GCD).
Section 3: Information Related to Surface Water
The Water Rights Viewer includes information about water rights authorizations and other water-related information. A user can find information on the location of authorized water rights points, a copy of the water right, the Adjudication Final Determination, current ownership of the water right, recent water-use data, and TCEQ’s adopted environmental flow standards.
Section 4: notice to Buyer and Seller
Informational section, all the questions are done
It is understood that for large properties or those with multiple histories, not every water well might be known
Water Attorneys are your friends, especially when dealing with water rights and ownership percentages.
Gentle reminder, all GCDs and their rules are not created equal, and one district may have different regulations than another nearby.
Ad valorum taxing authority can be found in the GCD Index.
If a seller or buyer wants to adjust, convey, or separate any water rights, please consult an attorney.
Worst-case scenario: someone gives away something that is not theirs to give…