What does it cost to turn on the water on a vacant lot in Highland Haven? Under the city's current fee ordinance, a standard 5/8-inch tap costs $6,000. A larger meter costs $8,000, and cutting the street to install the tap adds $2,000. If you're buying an existing home, the costs are smaller: a $100 non-refundable transfer application fee and a $250 deposit. Either way, the connection you pay for runs to a small set of wells, not to the lake you can see from the deck.
That one fact changes how to read water supply in this town. Lake LBJ is held at a nearly constant level. Highland Haven's water supply is managed under different rules, by a different agency, on a different timeline. In 2026 those two systems moved separately, and buyers comparing lake towns should understand why.
The Source Is a Granite Gravel Aquifer
The city's 2025 Annual Drinking Water Quality Report says the City of Highland Haven Water System provides groundwater from the Granite Gravel Aquifer in Burnet County. The equipment behind that is modest. The city's drought contingency plan, adopted in September 2024, describes two storage tanks rated at 100,000 gallons each. It names the main well as Central Texas Groundwater Conservation District Well #3286, and lists three alternate sources: a backup well, Johnson East, and Johnson West, which the plan also calls Well #6.
The plan's shortage triggers show what the city actually watches. They include well pumping capacity, the static water level in the main well, the levels in Tank #1 and Tank #2, and the drought stages declared by the groundwater district. The list says nothing about the level of Lake LBJ.
A Full Lake and a Drought Stage Can Run at the Same Time
On October 18, 2026, LCRA's River Operations Report showed Lake LBJ at 824.69 feet above mean sea level. A week earlier it read 824.62, and thirty days earlier 824.73. Over a month the lake barely moved, which is what a constant-level lake does.
The aquifer under the town had a very different 2026. Here is the year as the Central Texas Groundwater Conservation District published it:
| Date | District action | What it asked of groundwater users |
|---|---|---|
| March 19, 2026 | Raised the drought stage to Stage 3, Severe, saying groundwater levels were below average for that time of year | 20% voluntary reduction |
| May 29, 2026 | Lowered the stage to Stage 2, Moderate, after May rainfall | 10% voluntary reduction |
| Through mid-October 2026 | No later stage change among the district's published announcements, which run through September 15 | Stage 2 remains the latest posted status |
The district's May notice explains why the two systems don't move together. Groundwater levels "are still recovering from multiple years of below-average rainfall," the district wrote, and "unlike surface water reservoirs that can respond rapidly to heavy rains, aquifers typically benefit from sustained, long-term wet conditions." One good month of rain can lift a lake. It doesn't do the same for an aquifer.
For a Highland Haven water customer, the district's stage also changes the city's own limit. When the Stage 3 reductions took effect in March, the city's drought-status page said the city's groundwater permit was cut from 82 acre-feet to 65.6 acre-feet, and that all customers were required to reduce use immediately. That notice described the spring. The city's homepage now posts Stage 2, Moderate, with a voluntary 10% reduction through December 31, 2026.
Lake Water and Private Wells Follow the Same Schedule
Some buyers plan to irrigate with a lake pump or a private well and assume the city's drought rules won't apply to them. The drought plan says otherwise. Highland Haven follows the LCRA Domestic Water Use Outdoor Watering Schedule, and the plan applies it to "all forms of water sources including city water, private water wells, lake water and water harvesting systems." A lakefront lot with a pump in the cove runs on the same watering calendar as a house on city service. That matters if you're imagining a big lawn or an irrigated landscape on a second home you'll manage from a distance.
What the Monthly Bill Is Built On
The rate schedule the city links to is Ordinance 068, labeled "Effective January 2025." It charges a flat base rate for the first 2,000 gallons and then a rising price per thousand gallons above that.
| Charge | Amount |
|---|---|
| In-city base rate, 0 to 2,000 gallons per month | $59.00 |
| Out-of-town base rate, 0 to 2,000 gallons per month | $64.00 |
| 2,001 to 5,000 gallons | $5.50 per 1,000 |
| 5,001 to 10,000 gallons | $5.75 per 1,000 |
| 10,001 to 15,000 gallons | $6.00 per 1,000 |
| 15,001 to 20,000 gallons | $6.25 per 1,000 |
| 20,001 to 25,000 gallons | $8.25 per 1,000 |
| 25,001 gallons and above | $9.25 per 1,000 |
This structure suits a supply that comes from a permit. The base charge covers the cost of keeping a small well system running whether or not anyone is home, which is why a second home that sits empty most of the month still pays it. The steep jump above 20,000 gallons prices heavy outdoor use, the same use the drought stages ask people to cut back.
The Fix Voters Approved Is Still Waiting on a Land Deal
The city has a plan to add capacity, and voters funded it. On November 4, 2025, Highland Haven voters considered Proposition A, a $1 million general obligation bond for water system property and infrastructure with maturities of up to 20 years. According to the unofficial Burnet County results reported by DailyTrib, it passed 121 to 62.
The main purchase is the property next to the water plant, which includes two wells the city now leases. A September 2025 City Administrator's update also listed possible upgrades: replacing the water system generator, building out well #6, and adding variable frequency drives to the pump motors. The same update said the bond would be repaid from water system revenues, with no debt service tax or water rate increase. The city's budget for fiscal 2025-26 split the money into $750,000 for land, $175,000 for infrastructure improvements, and $75,000 for issuance costs.
Nearly a year after the vote, the land hasn't been bought. In an October 2 memo in the October 6 Board of Aldermen packet, City Administrator Andy Adams reported that the parcel is still with its current owner and that staff continues to work on the steps toward a possible acquisition. The memo also set out the timing:
"Once an agreement is in place for any property purchase, it generally takes 6–12 weeks to sell the bonds and finalize related transactions."
The bond stayed a standing discussion item on the October 20 agenda, next to a water system review that includes the Central Texas Groundwater District. In practice, the two leased wells are still leased, and any new capacity from the bond is at least one signed agreement plus six to twelve weeks away.
The tax side is clear in the city's adopted FY 2026-27 budget, voted on August 10, 2026. It lists a property tax rate of $0.1611 per $100 of value, up from $0.1505 the year before, and shows the debt rate as "N/A." The ballot language for this general obligation bond authorizes taxes sufficient to cover repayment, while the city has said it plans to pay this one from water revenues. A buyer who wants to understand both should read the proposition text and the budget together.
Questions That Belong in a Highland Haven Offer Period
These come straight from the documents above, and each one can be checked before closing:
- Is the home on city water, a private well, or both, and does any irrigation run on a lake pump? All three follow the LCRA outdoor watering schedule under the city's drought plan.
- For a vacant lot, has a tap already been paid for, or will the $6,000 to $8,000 tap fee and the $2,000 street cut fee be part of the build budget?
- What drought stage is posted on the city's website and the groundwater district's site the week you go under contract?
- Where does the water bond stand at the most recent Board of Aldermen meeting? The regular meeting after October 20 is scheduled for November 3 at Roscoe Holt City Hall.
- If you'll own the home from out of town, what will the $59 base charge plus seasonal outdoor use add up to on a property that sits empty for weeks at a time?
The city also runs a text service. Residents can text "Highland Haven" to 91896 for notifications, or text "Hi" to 830.265.4086 to ask questions or report an issue. It's an easy way to hear about a stage change without checking the website every week.
Quick Answers
Does a high Lake LBJ level mean Highland Haven has plenty of water? No. The city's supply comes from Granite Gravel Aquifer wells, and its shortage triggers are based on well levels, tank levels, and the groundwater district's drought stages.
Is Highland Haven under water restrictions right now? The city's latest posting is Stage 2, Moderate, with a voluntary 10% reduction through December 31, 2026, which matches the groundwater district's May 29 notice.
Has the city bought the well property with the bond yet? Not as of the city's October 2, 2026 memo. The parcel next to the water plant is still with its current owner, and bonds are usually sold 6 to 12 weeks after a purchase agreement is in place.
The fees, rates, and bond terms above come from the city's published documents. This is general information, not legal, tax, or financial advice, so confirm your own situation with the city and the right professional before you rely on it.
If you're comparing a Highland Haven home on city water with a Lake LBJ property on a private well or lake pump, those water details belong in the offer, not after closing. Kale Stephens can walk you through the tap, well, and drought-stage questions for a specific address. Let's Connect.
