Texarkana city officials and water‑industry representatives met Thursday at North Heights Community School to discuss a proposed 40‑year lease of water rights from Millwood Lake to a customer in Texas. The plan, reported by the Texarkana Gazette, could generate between $16 million and $20 million each year for the city, potentially exceeding $1 billion over the life of the agreement, according to City Manager Tyler Richards.
Richards explained that the Southwest Arkansas Water District would seek to lease up to 110 million gallons per day (MGD) of the city’s excess water rights, while Texarkana would retain roughly 40 MGD after the transfer. The city’s current water demand averages about 7 MGD, peaks at 10 MGD in summer, and is projected to rise to approximately 9.2 MGD by 2050, providing ample capacity for future growth.
The application has already been approved by the city councils of Texarkana, Ashdown and Ogden, but it still requires review by the Arkansas Natural Resources Commission (ANRC). The ANRC is scheduled to announce its receipt of the application at its November 18 meeting, followed by a public hearing. After the hearing, the commission has 120 days to evaluate the proposal and forward a recommendation to the General Assembly, which could act on the matter in March or April 2027.
Environmental concerns were raised by attendees. A sustainability study conducted by a licensed professional engineer, cited by the Arkansas Online report, concluded that the additional withdrawals would not interfere with the U.S. Army Corps of Engineers’ minimum dam‑release requirement of roughly 155 cubic feet per second (about 100 MGD). While no separate environmental impact study has been commissioned, Richards said further review is expected through the ANRC or other agencies, and the proposal includes drought‑contingency provisions that would reduce or suspend transfers when lake levels are low.
Financial responsibility for new infrastructure also was addressed. Heartland Water Partners, a Dallas‑based firm, would finance construction of the pipeline and upgrades to the Southwest Arkansas Water District’s intake facilities. The participating municipalities would not bear those costs; their primary expense would be legal representation. The district estimates its increased pumping operations will cost about $3 million annually, though it will not receive any share of the water‑sale proceeds.
State Senator Jimmy Hickey Jr. voiced strong opposition to the project, warning that the projected $16‑$20 million in annual revenue could jeopardize the special income‑tax exemption that currently benefits Texarkana, Arkansas residents. The Gazette editorial outlined eight protections that community leaders say should be required before the city moves forward, including a separate revenue account, equitable infrastructure spending, an independent environmental impact study, stronger opt‑out rights, four‑week public disclosure of contracts, conflict‑of‑interest safeguards, measurable financial benefits for residents, and regular independent audits.
What’s next: The ANRC will hold its public hearing on November 18, after which it will have 120 days to review the application. The General Assembly could consider the proposal in its March‑April 2027 session. City officials said they will continue to hold public meetings and provide updates as the process advances.
Sources: texarkanagazette.com, texarkanagazette.com, arkansasonline.com
