Nearly $164M in water conservation investments planned for Rio Grande Valley

Nearly $164 million in water conservation investments are planned for the Lower Rio Grande Valley, targeting irrigation infrastructure as the region continues to face drought and long-term water supply concerns.

The North American Development Bank announced Thursday that it intends, subject to board approval, to provide $76 million through its Water Resiliency Fund for projects across 12 irrigation districts in the Valley.

That money would be combined with nearly $70 million in proposed grants from the Texas Water Development Board and almost $18 million from the U.S. Bureau of Reclamation and participating irrigation districts. The Texas Water Development Board funding remains subject to approval at its September board meeting.

The projects would line irrigation canals, convert open canals to pipelines and make other system upgrades expected to conserve nearly 44,000 acre-feet of water annually.

“One year after launching the Water Resiliency Fund, we are pleased to announce our intent to fund $76 million in investments for South Texas submitted during the first call for projects,” North American Development Bank Managing Director John Beckham said.

Beckham said pairing the bank’s investment with state, federal and local resources would maximize the amount available to conserve water and improve the reliability of supplies for Rio Grande Valley communities.

Investing in the Valley’s existing water supply

The announcement was made during the North American Development Bank Summit in San Antonio, where Beckham appeared alongside Roberto Lazzeri Montaño, Mexico’s ambassador to the United States, and L’Oreal Stepney, chairwoman of the Texas Water Development Board.

The Water Resiliency Fund can cover up to 50% of a project’s cost, allowing the bank’s financing to be paired with other government and local funding.

The North American Development Bank, known as NADBank, is a binational institution established and funded by the U.S. and Mexican governments to finance environmental infrastructure along the border. Since its creation more than 30 years ago, it has supported 340 projects representing $12.8 billion in total investment. 

The Water Resiliency Fund was launched in 2025 to accelerate water conservation, efficiency and supply diversification projects in communities facing increasing water stress along the U.S.-Mexico border.

Mexico projects also in the pipeline

The fund is simultaneously advancing water projects south of the border.

Its first call for projects in Mexico generated 112 expressions of interest from communities across the country’s six northern border states, with 60% coming from states along the Rio Grande, or Rio Bravo.

In Mexico, the program will prioritize municipal utility projects that conserve water or diversify water supplies. Funding amounts for those projects have not yet been announced.

“Water security has become one of the most critical challenges facing the future of the U.S.-Mexico border region,” Lazzeri said. “As drought conditions become increasingly severe and prolonged, the Water Resiliency Fund demonstrates the value of binational cooperation and strategic investment in strengthening the future of our shared border.”