To drill a water well in Texas, you own the groundwater under your land, but you still have to work through your local Groundwater Conservation District’s rules, hire a driller licensed by the Texas Department of Licensing and Regulation, meet construction and setback standards, and make sure the required well log gets filed with the state after the work is done. Many rural landowners drilling a household or livestock well on more than 10 acres are exempt from district permitting, but the other obligations still apply.
What you actually have to file, pay, and prove depends on where the property sits and how much water the well will produce.
Do You Need a Permit at All
Start here, because the answer changes everything else. Under Texas Water Code Section 36.117, a Groundwater Conservation District must exempt a well from its permitting requirements if the well meets all three of these conditions:1State of Texas. Texas Water Code 36.117 – Exemptions
- It is used only for household purposes or to water livestock or poultry.
- It sits on a tract larger than 10 acres.
- It is drilled and equipped so it cannot produce more than 25,000 gallons per day.
A district cannot restrict production on a well that qualifies. For scale, a family of four uses roughly 300 to 400 gallons per day, so a typical domestic well is nowhere near the 25,000-gallon ceiling.
Exempt is not the same as unregulated. Most districts still require you to register the well so they can track total withdrawals from the aquifer. Skipping registration usually causes trouble later, during a sale or a boundary dispute, rather than at the moment you drill. You also still have to use a licensed driller and file a well log, exemption or not.
The exemption is tied to how you use the water. If you later start selling water, irrigating a commercial crop, or supplying a subdivision, the district can revoke the exemption and require a full operating permit.
Find Out Which Groundwater Conservation District Covers Your Land
Groundwater Conservation Districts are the local agencies that write and enforce the rules on well spacing, production limits, water quality protection, and aquifer recharge. Each district sets its own rules under Chapter 36 of the Texas Water Code, and those rules vary a lot from one part of the state to another.2State of Texas. Texas Water Code 36.101 – Rulemaking Power What applies over the Edwards Aquifer will not match what applies in the Panhandle.
Not every acre of Texas falls inside a district. Where no district exists, there is essentially no local rulebook on pumping beyond the common-law prohibition on waste and malicious drainage of a neighbor’s water. Before you plan the well, find out whether you are inside a district and, if so, request its current rules.
Hire a Licensed Driller
Anyone drilling a water well in Texas has to hold a valid license from the Texas Department of Licensing and Regulation. Verify the license through TDLR’s online search tool before you sign anything.3Texas Department of Licensing and Regulation. Water Well Drillers and Pump Installers An unlicensed driller cannot legally file the state well log, and a well with no official record becomes a serious problem the first time you try to sell the property or clear title.
Drilling costs generally run $25 to $130 per linear foot in Texas, depending on the geology and the diameter of the borehole. A shallow domestic well around 200 feet deep might come in at $5,000 to $15,000. A deeper agricultural well past 1,000 feet costs considerably more. Ask for an itemized estimate that separates drilling per foot, casing, grouting materials, pump installation, and any testing. A single lump sum makes comparison shopping harder and hides where cost overruns are likely to appear.
Where the Well Can Go
Placement matters both for water quality and for compliance. TDLR’s technical guidance sets a minimum separation of 50 feet between a well and a septic tank, and 100 feet between a well and any drain field or spray area.4Texas Department of Licensing and Regulation. Well Drilling and Pump Installing Technical Guidance Your Groundwater Conservation District may add its own spacing rules controlling distance from property lines and from other wells. These local rules exist to prevent concentrated drawdown that would lower the water table in a small area.
Before you file anything, you need the well’s proposed GPS coordinates, the intended use, the estimated depth, and the casing specs your driller recommends. The Texas Water Development Board maintains a statewide database of well records, and your location data feeds into that system.5Texas Water Development Board. Locating a Water Well Report Sloppy coordinates cause real problems: if the well is entered at the wrong point, it may not surface when a future buyer or inspector searches for its records.
Applying for a Permit
If the well does not qualify for the domestic or livestock exemption, you need a permit from the district before drilling starts. Applications generally go through the district’s portal or by mail and include your site data, well design, and the volumes you plan to produce.
Fees vary by district. The Upper Trinity Groundwater Conservation District, for example, charges $600 for a new well registration and $1,000 for an operating permit application. Other districts charge more or less, so confirm the current fee directly.
The district reviews the application against its spacing and production rules. Simple domestic applications move faster; commercial or irrigation permits that trigger a public hearing take longer. Expect several weeks either way. Do not let the driller break ground before you have written authorization. Drilling without a permit exposes both of you to district enforcement.
The Well Log After Drilling
Within 60 days after the well is completed, or after drilling stops, the driller has to file a well log with TDLR and provide copies to the Texas Commission on Environmental Quality and to you.6State of Texas. Texas Occupations Code 1901.251 – Well Log If your property sits in a Groundwater Conservation District that requires a copy, the driller sends one there too. The log records the depth, the geological formations the drill passed through, casing and grouting details, and the water-bearing zones the driller hit.
Keep your copy somewhere you can find it. You will need it for future property inspections, real estate transactions, and any argument with the district about what the well is permitted to do. If the driller never files the log, the well essentially does not exist in state records, and proving what was drilled becomes your problem.
Testing the Water
The federal Safe Drinking Water Act does not cover private wells serving fewer than 25 people.7US EPA. Overview of the Safe Drinking Water Act No agency tests your water. That job is yours.
The EPA recommends annual testing of private wells for coliform bacteria, nitrates, total dissolved solids, and pH, and more frequent testing if there are infants, elderly adults, or pregnant women in the household.8US EPA. Protect Your Home’s Water Some situations call for testing right away rather than waiting for the annual round:
- Nearby groundwater problems, flooding, or new construction close to the well.
- Any repair or replacement of a component of the well or pump system.
- A noticeable change in how the water looks, smells, or tastes.
Match the panel to your surroundings. Properties near intensive agriculture should test for nitrates, nitrites, and pesticides. Properties near gas drilling should test for chloride, sodium, barium, and strontium. In areas with elevated radon, test the water for radon too. Use a state-certified drinking water lab. A comprehensive panel typically runs $50 to $500 depending on how many contaminants it covers.
Ongoing Maintenance and Plugging
Plan on inspecting the system every year. Professional well system inspections generally cost $150 to $900 depending on depth and complexity. An annual check should cover the pump, the pressure tank, the electrical connections, and a visual look at the wellhead for cracks or signs of surface water getting in. A failing pressure switch or a cracked well cap is cheap to fix on the day you notice it and expensive to fix after it causes contamination.
When a well is no longer in use, it turns into a liability. An open or deteriorated wellbore is a direct conduit from the surface into the aquifer.9Texas Department of Licensing and Regulation. Technical Guidance on Abandoned or Deteriorated Water Wells Texas law lets landowners plug wells on their own property, but the plugging has to meet the state’s construction and sealing specifications, and a plugging report has to be filed once the work is done. If you buy land with an old well already on it, find out its condition early. An unsealed abandoned well is both a physical hazard and a source of contamination liability.
How the IRS Treats the Cost
For most homeowners, drilling a water well counts as a capital improvement rather than a currently deductible expense. IRS Publication 551 lists capital improvements that add to a property’s basis, including additions and roof replacements, and a permanent well fits the same category.10Internal Revenue Service. Publication 551 – Basis of Assets The added basis reduces the taxable gain when you sell.
If the well serves a farming or ranching business reported on Schedule F or Schedule C, the treatment can shift. Depending on the specific use and the IRS tangible property regulations, some costs may be depreciable or partially deductible. A tax professional familiar with agricultural operations can work out whether your costs are better capitalized or expensed. Getting the classification wrong means either paying too much now or correcting it later.