A Municipal Utility District (MUD) is a local governmental entity that provides services to its customers and residents. MUDs are created by the Texas Legislature or Texas Commission on Environmental Quality (TCEQ). MUDs are the primary tool used in Texas to finance and construct utilities for new development. A MUD may provide a broad range of services and improvements relating to water supply and conservation, drainage, public safety, solid waste collection and disposal, wastewater treatment, firefighting, roads and recreational activities. A MUD promotes the development of raw land, typically into urban or suburban residential communities, by providing infrastructure and services for the property within its boundaries.
