The North Texas Municipal Water District approved a $1.7 billion capital improvement program for its 2026 fiscal year. The largest component is the Texoma Two-Step program, featuring two new pipelines totaling $605 million that will transport water from Lake Texoma to the District’s treatment plants in Wylie and Leonard. Construction contracts are planned for award in October 2026. Work begins late this year and runs through 2029, per the District’s official project announcements at ntmwd.com.
The scale of investment reflects real pressure. More than 55,000 people are moving into NTMWD’s service area every year, according to the District, and the system currently serves a resident population of over 2.3 million. The District’s 2026 capital spending follows $1.1 billion invested in fiscal year 2024 and nearly $1.2 billion in 2025, representing a sustained multi-year build cycle that is not slowing down.
For utility and excavation contractors in North Texas, the downstream implication is straightforward. Pipeline corridors of this scale require utility sand for pipe bedding, select fill for trench backfill, and crushed stone for drainage structures along the alignment. The NTMWD program spans communities across Collin, Dallas, and surrounding counties in some of the fastest-growing areas of the state. That work creates consistent, volume-driven demand for aggregate over a multi-year construction window.
“More than $1.3 billion of 2026’s Capital Improvement Program will be devoted to ensuring a safe, reliable water supply for North Texas. The Texoma Two-Step program features two new pipelines, with construction contracts planned to be awarded in October and construction scheduled to start in late 2026.”
Source: North Texas Municipal Water District · ntmwd.com · January 2026
The window for utility contractors to establish material sourcing relationships ahead of contract award is now. Subcontractors who bid on NTMWD work in October without confirmed material pricing and logistics coordination are building bids on assumptions rather than confirmed costs. In a supply environment where aggregate demand from competing public infrastructure projects is running at record levels across North Texas, that adds meaningful risk to a bid.
The NTMWD program is one piece of a broader North Texas infrastructure build cycle. TxDOT highway reconstruction, county road programs, and private development are all drawing from the same regional aggregate supply and the same pool of available trucks at the same time. Early sourcing coordination is not just about price. It is about securing access to the material when the job starts.
Utility contractors planning for North Texas pipeline work in the second half of 2026 should be confirming material sourcing before contracts are awarded, not after.