Groundwater Conservation District Loan Program (GDLP)

The GDLP provides loans to finance the start-up costs of Groundwater Conservation Districts. The program is authorized under Water Code Chapter 36, Subchapter L, and governed by TWDB rules Chapter 363 Subchapter H.

View more details on Groundwater District Loan Program

Who Can Apply?

Generally, funding is available for any Groundwater District or Authority with the authority to regulate the spacing of water wells, the production from water wells, or both. The district must be a newly confirmed district or a legislatively created district that does not require a confirmation election.

How Can GDLP Loans Be Used?

Loan funds may be used to fund or reimburse an applicant's initial expenses, including start-up and operating costs. Eligible costs of the applicant may include:

  • creation expenses, including election costs;
  • salaries and payroll taxes;
  • utilities;
  • travel;
  • insurance;
  • building and office leases;
  • office supplies and furniture;
  • telephone and computer equipment; and
  • legal and professional fees.

How Do I Apply?

The Applicant is encouraged to meet with TWDB staff for assistance in the preparation of the application and to discuss the terms of the loan. The applicant must submit an application to the TWDB Project Development office.

The application contents are described in TWDB's rules 31 TAC 363.806(b). Briefly the application consists of applicant identification, resolution requesting the assistance, some assurances the loan will be repaid, the operating budget and payback plans.

These application materials must be submitted by the first business day of the month preceding the month during which the applicant desires Board consideration. Completed applications for State Loans are considered by the Board usually in Austin on the third Wednesday of each month, at which time the Board may commit to fund the project. The Tentative Meeting Calendar shows Board meeting times and locations.

What Are the Conditions of the Financial Assistance?

Security Instrument: Bonds or loan agreements as appropriate per the applicant’s requirements for debt issuance.

Pledge: System revenue, contract revenue, ad valorem tax, and tax and revenue pledges are typically required.

Length of Loans: The loans may be made for period not to exceed three years.

Interest Rates: Interest rate webpage.

Where Can I Get More Information?

For additional information, please contact