The District was created by an order of the Texas Water Rights Commission, predecessor to the Texas Natural Resource Conservation Commission, now called the Texas Commission on Environmental Quality (TCEQ) on February 17, 1972 as Lakeway Municipal Utility District No. 1 and operates as a municipal utility district pursuant to the provisions of Article XVI, Section 59 of the Texas Constitution and Chapters 49 and 54 of the Texas Water Code, as amended, and other general statutes of the State of Texas applicable to municipal utility districts.  The District is empowered, among other things, to purchase, construct, operate and maintain all works, improvements, facilities and plants necessary for the supply and distribution of water; and the collection, transportation, and treatment of wastewater.  The District may issue bonds and other forms of indebtedness to purchase or construct such facilities.  The District is subject to the continuing supervision of the TCEQ and is primarily located within the boundaries of the City of Lakeway and the Village of the Hills, and partially within the extraterritorial jurisdiction of the Village of the Hills respectively.  The District's name was changed to Lakeway Municipal Utility District on November 7, 1983.   

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