Johnson City, Texas, is grappling with a groundwater permitting standoff and a short-term rental boom that has consumed 67 of its 540 residential water connections, according to Mayor Stephanie Fisher. In the latest episode of The Building Texas Show, Fisher detailed the city's struggle to secure a pumpage permit increase from the Blanco Pedernales Groundwater Conservation District, even as it sits on the Pedernales River but lacks infrastructure to tap it for drinking water.
Johnson City relies solely on the Ellenberger Aquifer, a minor aquifer off the Llano Uplift, for its drinking water. The city holds a permit for 200 acre-feet of Pedernales River water through the Lower Colorado River Authority but cannot harvest it without millions in infrastructure investments. Fisher noted that previous administrative decisions have complicated current negotiations with the groundwater district, stating, "There was some previous administrations that made some decisions. I think they put the cart before the horse, and that's causing us to have some questions asked." She expressed confidence in the district's due diligence to ensure long-term water availability.
The short-term rental market, largely driven by platforms like Airbnb, has absorbed 67 of the city's residential connections, reducing housing availability for residents and straining water resources. Fisher views a boutique or resort-style hotel, ideally on the river, as the key to alleviating housing pressure and expanding the tax base. "A hotel is the single biggest unlock for both housing and tax base," she said.
Johnson City, the last stop before Fredericksburg on Highway 290, sees significant through-traffic to Lake LBJ but struggles to convert that traffic into overnight stays. The city boasts attractions such as the Science Mill, the LBJ National Historic Park, the Old Settlement, the Exotic Resort Zoo, and an annual fair and rodeo. Fisher and host Justin McKenzie discussed how a hotel could anchor tourism and encourage visitors to stay overnight.
The episode highlighted the broader Hill Country affordability crisis, contrasting Johnson City's challenges with 100-year water planning efforts in Midland and Lubbock. McKenzie noted that Hill Country communities remain dependent on aquifer recharge in 15-year rainfall cycles, making long-term planning critical. The conversation underscored the delicate balance between growth, water sustainability, and community identity in one of Texas's fastest-growing regions.
The Building Texas Show, hosted by Justin McKenzie, travels the state in conversation with mayors, founders, and operators shaping Texas growth. This episode is available on YouTube and wherever podcasts are heard.
