McAllen’s $204M water investment expects to seek construction bids in 2027
Water flows through the city of McAllen’s North Water Treatment Plant, part of a broader regional effort to secure reliable water supplies as river levels grow less dependable. Photo Credit | Kristen Mosbrucker-Garza

The city of McAllen’s big $204 million investment to diversify its drinking water portfolio from reliance on the Rio Grande River with a new brackish water desalination plant is moving forward with construction bids expected in early 2027. 

“The river is not as reliable as it used to be,” Mark Vega, general manager of McAllen Public Utilities previously told the Rio Grande Valley Business Journal. “There’s plenty of groundwater, but it’s salty, so you have to treat that, and that’s a more expensive process than surface water treatment.” 

On Sept. 14 McAllen water utility leaders and independent consultants also told city leaders that the test wells discovered more available water underground than previously estimated over a 170-acre site. 

“We had four test wells, the original assumption was to drill four test wells in order to determine the quality and volume of water that we could get from the groundwater,” said Sergio Espinoza, project manager for the Rio Grande Valley for Carollo Engineers. “After drilling at the site it was determined by the hydrogeologist that we can actually get more water.” 

5,000+ business leaders across the Valley start their day with us.

Join them free!

RGV Business Journal is the only newsroom dedicated exclusively to the business and economic forces driving South Texas and the border economy.

Our subscribers get:

In-depth reporting on real estate, healthcare, energy, manufacturing, and trade
Data and economic trend analysis unavailable anywhere else in the region
The Morning Newsletter: daily, before the workday starts

Try it free for 30 days.

Start My Free Trial

$9.95/month after trial. Cancel anytime.


Daily Business Update

Get the latest business news delivered to your inbox every morning for free.

    Try 30 Days Free!

    Get full access to award-winning journalism covering business, real estate, health care, economic trends, and the people shaping the Rio Grande Valley.

    30 Days Free!

    $9.95/month

    Limited time offer

    Subscription renews after your 30 day free trial at $9.95/mo.

    Included Benefits


    • Unlimited access to all articles
    • Daily business news and analysis
    • Subscriber-only content and features
    Get Full Access

    McAllen produce distributor plans $8M cold storage warehouse

    September 9, 2026 • 3 min read

    Amore Produce, a distributor of Mexican-grown fruits and vegetables, plans a more than 40,000-square-foot cold storage facility in South McAllen.... Read more »

    One Border Patrol checkpoint goes quiet near SpaceX. Two new checkpoints are popping up in Starr County.

    February 2, 2026 • 3 min read

    The cities sit on opposite ends of the Rio Grande Valley, pointing to shifting enforcement patterns for the Rio Grande... Read more »