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What are water and sewer tap fees and impact fees?

TexasReviewed October 2026

They are one-time charges a utility collects to connect a new home. A tap or connection fee covers making the physical connection and setting the meter; an impact fee helps pay for system growth such as treatment plants, storage and lift stations. In Texas, cities may charge impact fees under Local Government Code Chapter 395. Fort Worth, for example, bases its fees on meter size and collects them before a building permit is issued; its 2025 rate for the smallest residential meter was $5,504. Austin requires tap fees to be paid before building permits are issued. Amounts vary greatly between cities and rural water suppliers, so request a written quote.

Check your local rule. This varies by state, county or city. Your permitting office has the final word; the official lookup pages below show you who that is.

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General information, written in our own words from the sources listed with each answer. It is not legal, engineering, tax or financial advice. Rules change and differ by state, county and city, so confirm with the office that issues your permit before you build. Last reviewed October 2026.