No, it’s not against the law to catch rain-water in Texas. Rainwater harvesting is not only legal in Texas, it is promoted by the legislators who realize that water supplies need to meet the challenges of an ever-expanding population and extended droughts. Texas has taken more steps than any other state in this series to establish a legislative and financial structure that encourages rainwater harvesting at all levels of government – from state legislation to county incentives to free training programs for city officials. Every Texas homeowner who is thinking about rainwater collection should know the specific laws, the tax exemption and the local incentives that are available in your city.
Key Takeaways
- It is not illegal to collect rainwater in Texas. Texas is one of the most advanced states in the nation regarding rainwater harvesting, with several laws, tax breaks and municipal rebate programs promoting it.
- Rainwater harvesting was legalized in Texas with House Bill 3391, and the bill outlines how it can be utilized on residential and commercial properties.
- Texas Tax Code Section 151.355 provides a sales tax exemption for all rainwater collection equipment, labor and materials, including rain barrels, cisterns, diverters, pipes, filters and installation labor.
- Texas Property Code Section 202.007 legislatively bars homeowners associations from banning rainwater harvesting systems, and is one of only a few states that includes explicit language to protect homeowners associations regarding rainwater collectors.
- Texas Government Code (TGC) Section 447.004 mandates that some new state facilities be designed to include rainwater harvesting systems.
- There is no statewide registration or permitting for outdoor residential collection systems. May require permits for potable systems that are connected to domestic plumbing.
- Homeowners who install cisterns that meet specific criteria can take advantage of free training, guidance and cistern rebates in major Texas cities like San Antonio.
What Texas Law Says About Collecting Rainwater
Texas has laws to encourage rainwater harvesting for personal and commercial purposes. The Texas legislature enacted several bills that allow rainwater harvesting, and that allow both residents and businesses to access it.
The legal basis is based on a number of intertwined statutory provisions that establish the most comprehensive framework at state level for rainwater collection in this series.
In addition to being legalized, rainwater harvesting is outlined by Texas House Bill 3391 (2011) for residential and commercial buildings. Specific conditions are included in the bill for systems that are connected to a public water supply system, and mandates that the municipality or owner must approve any such connection.
Texas Property Code Section 202.007: This law bars a homeowners association from barring rainwater harvesting systems. This law also encourages composting, water-efficient irrigation and drought-tolerant landscaping. Only a handful of states in the nation have state law that explicitly prohibits HOAs from banning rainwater systems.Texas is one of the few states in the country with state law that explicitly bans HOAs from banning rainwater systems.
Rainwater collection is a requirement for state building projects: Texas Government Code Section 447.004 requires the state to take into account the collection of rainwater in the design of certain new state facilities.
Texas Local Government Code Section 580.004: Municipalities and counties are encouraged to encourage rainwater harvesting at residential, commercial, industrial and educational facilities by providing discounts for rain barrels or rebates for water storage facilities.
The Sales Tax Exemption is located in Texas Tax Code Section 151.355
This is the most apparent monetary gain for a Texas homeowner and it sets Texas apart from most other states in this series.
Thanks to Texas Tax Code Section 151.355, any equipment, labor, or materials used for installing a rainwater harvesting system are exempt from state sales tax. This includes the rain barrel or cistern, the diverters, pipes, filters, and even the labor you employ to assemble it. This exception is for both small-scale home-made systems and large-scale rainwater collection systems for potable use.
To benefit from it, the buyer of the equipment shall provide the seller of the equipment at the time of purchase an application for tax exemption form 01-339 under Texas Tax Code Section 151.355.
Whether you’re installing a small rainwater harvesting system for your garden or a large potable water harvesting system for your entire home, this exemption applies to all. It’s one of the most obvious messages the state is sending out for water conservation, not only is it encouraged, it’s financially supported.
HOA Protection: Texas Property Code Section 202.007
This is the only legal protection that makes Texas’s framework unique among the states in this series.
A homeowners association cannot ban the use of rain water harvesting by the members of the association. The state has also instituted laws that prevent HOAs and other groups or agencies from interfering with residential housing and commercial structures that want to incorporate rain-catching systems.
Many states have laws that allow and encourage rainwater collection, but in most states, rain barrels or cisterns that are visible on residential properties can still be limited or banned by HOA governing documents. Texas has removed that barrier by law. A Texas homeowner’s association that tries to limit a homeowner’s ability to install a rainwater harvesting system is in violation of state law under Texas Property Code Section 202.007.
This coverage is also applicable to commercial buildings, which means business owners in Texas can have a rainwater collection system without worrying about HOA or property association issues.
Special Tax Credit Programs and Incentives by Municipality & County Across Texas
Rainwater harvesting is not only allowed in Texas. It champions it. Whether it’s the legal safeguards in the Texas Property Code or the financial benefits in the Texas Tax Code, the message is clear: Rainwater collection makes good sense from a policy standpoint.
In addition to the statewide sales tax exemption, there are incentive programs established in major Texas cities.
San Antonio: San Antonio provides free trainings and advice to install rain gardens or rain collection barrels as a more simple first step to rainwater harvesting as a water conservation and flood management solution. The San Antonio Water System even provides a rebate to homeowners who install a cistern to hold over 500 gallons of rainwater.
Austin and other cities: Cities and counties throughout the state of Texas provide incentives for installing rainwater catchment systems and for using rainwater, such as tax rebates. Contact your local groundwater conservation district, city water department or county extension office to find out what incentives may be available in your area.
Cities also have financial motives for encouraging residential collection via rebate programs because collecting rain water also helps mitigate flooding and can help utilities manage peak demands in the summer when the demand is greatest.
Is there a rainwater collection permit in Texas?
There is no statewide registration for rainwater systems that are used for outdoor purposes. In some counties or cities, they will require notice or documentation, particularly if your system is larger than a certain size or is connected to your plumbing.
The key is intent. If it is a simple use outdoors, no permit is required. If you are adding it to your home’s infrastructure, check with your local permitting authority and consult with a licensed professional before you proceed.
If a person wants to use a rainwater harvesting system with a public water supply system, he/she should obtain consent from the municipality or the owner. This is the only scenario in which formal approval is required in Texas, and it only pertains to public water connection, not to standalone residential collection systems.
There are some local groundwater conservation districts that have their own notification or registration requirements for larger systems. District-level checks prior to installation will help guarantee compliance and can result in discovering additional local incentive programs that are not included in state-level research.
This is a general guide to what you can and cannot do in Texas
For purposes of this section, what is generally allowed without a permit:
Collection on roof tops for outdoor non-potable use in rain barrels or cisterns.
Water will be used for garden and lawn irrigation.
- Installation of cistern systems at any size that is practical for a typical residential site for outdoor use
- Apply to outdoor surfaces for cleaning and car washing, and for livestock watering.
- Installation in Texas law protected HOA communities
The following may need extra consent:
- Water systems designed for drinking water that are connected to domestic plumbing.
- Systems that are connected to a public water supply system, and must receive municipal approval under House Bill 3391
- Systems greater than 500 gallons in some city/county jurisdictions with local notification requirements
- Collection systems in groundwater conservation districts that serve the needs of large-scale commercial or agricultural use, and that have their own requirements
Water Quality & Safe Use of Collected Rain Water
In Texas’s liberal and pro-active approach to rainwater collection, there are some uses for which the quality of the collected water must be addressed.
Some states prohibit the use of collected rainwater for human consumption without treatment because they are concerned with the presence of harmful bacteria or what may occur during storage, such as the container.
Health guidelines on potable use are not superseded by the Texas permissive framework. Rainwater used for drinking, cooking or tooth brushing should be filtered and treated. Collected rainwater is typically safe and suitable for outdoor use for irrigation, livestock watering, and flushing toilets.
How Texas is doing relative to other states
Texas is one of the most proactive states in encouraging rainwater collection through public policy, and its HOA protection statute is the only one in this series that is unique.
| State | Legal Status | Volume Limit | Tax Incentive | HOA Protection | Key Law |
| Texas | Legal and strongly encouraged | None | Yes (sales tax exemption) | Yes (Property Code 202.007) | HB 3391, Tax Code 151.355 |
| California | Legal and encouraged | None | Yes (property tax exemption) | No specific statute | Rainwater Capture Act 2012 |
| Florida | Legal | None | No | No | Riparian rights |
| Arizona | Legal and encouraged | None | Yes | No | Tax incentives |
| Virginia | Legal and encouraged | None | Yes (tax credit) | No | State encouragement |
| Tennessee | Legal | None | No | No | SB 2417/HB 1850 |
| Michigan | Legal | None | No | No | No restrictions |
| Indiana | Legal | None | No | No | No restrictions |
| Ohio | Legal | None | No | No | No restrictions |
| Colorado | Legal with restriction | 110 gallons | No | N/A | HB 16-1005 |
| Utah | Legal with restriction | 2,500 gallons | No | N/A | Registration required |
Texas has the most comprehensive legislative framework for encouraging rainwater collection, with a combination of a sales tax exemption, explicit HOA protection, mandatory state building requirements and municipal rebate encouragement.
For Texas homeowners, here are some helpful tips to follow
These are some of the practical steps that ensure full compliance and maximum financial benefit before installing any rainwater collection system in Texas:
- Check with your local county and city to see if there are any other requirements beyond the state framework, especially if your system will be larger than 500 gallons.
- Check to determine if you are within a groundwater conservation district and if there are notification requirements.
- If the HOA has already said “no” to rainwater collection, reference Texas Property Code Section 202.007 to the HOA management as the law governing the situation.
- To get the sales tax exemption under the Texas Tax Code Section 151.355, you must bring form 01-339 to your equipment supplier at the time of purchase.
- Call your city water department or equivalent water system in San Antonio to find out about local rebate programs
- If your system is to be plumbed into your home for potable water, please hire a licensed professional and check with your permitting office prior to installation.
- Filter and treat water stored for drinking or cooking purposes
Also Read: Is It Illegal To
Expert and Legal Perspectives
Rainwater harvesting is legal in Texas and the lawmakers are keen on encouraging the practice as they are looking to ensure water supplies match with the extended drought and the surge in population.
Texas Property Code Section 202.007 does not allow a homeowners association to restrict the use of rainwater harvesting systems. Additionally, Texas Government Code Section 447.004 mandates that the state include rainwater harvesting systems in the design of certain new state facilities. Municipalities and counties are also encouraged to encourage rainwater harvesting at residential, commercial, industrial and educational facilities by providing incentives, including rain barrel discounts, water storage facility rebates under Texas Local Government Code Section 580.004.
It is legal to collect rainwater in Texas and the state law offers protection. It can’t be outlawed by HOAs and tax exemptions and local rebates make it even easier to access. Permits are only needed for potable systems connected to plumbing. There is no need to seek approval for outdoor collection.
Conclusion
It is not illegal to collect rainwater in Texas. Texas is one of the most forward-thinking states in the nation when it comes to rainwater harvesting, as it has established a comprehensive rainwater harvesting program that actively encourages rainwater harvesting at all levels of government. Rainwater harvesting was legalized and formalized in Texas with House Bill 3391. Sales tax in Texas is not charged on any equipment used in the collection of water for drinking or domestic purposes or for the installation of such equipment. (Texas Tax Code Section 151.355). The Texas Property Code Section 202.007 clearly bans HOAs from banning rainwater systems. Collection systems must be included in state facilities as required by Texas Government Code Section 447.004. Many cities, such as San Antonio, provide even more: free training and cistern rebates.
Outdoor residential collection systems of any practical size are exempt from state permit or registration. Systems providing potable water for domestic use or systems that are connected to public water supply systems must be approved prior to connection. All Texas homeowners who are interested in rainwater collection should take advantage of the sales tax exemption at time of purchase, check with their city for any rebates, and verify any city or groundwater conservation district requirements prior to installation.
If you’re interested in the national law regarding rainwater collection, check out Is It Illegal to Collect Rainwater?
Frequently Asked Questions
1. Can you collect rainwater in Texas?
In addition to being allowed by law, rainwater collection is encouraged in Texas by several statutes, the sales tax exemption for all rainwater collection equipment, the protection of rainwater from HOA regulations, and municipal rebate programs.
2. In Texas, is it permitted to collect rainwater?
Outdoor residential collection systems do not need a statewide permit. If your system is connected to a home plumbing system for potable water use, or a public water supply system, you may require a permit since the city must approve under House Bill 3391.
3. In Texas, can HOAs stop rainwater collection?
Homeowners associations are not allowed to ban the use of rainwater harvesting systems under the Texas Property Code. Rainwater collection is prohibited under state law by any HOA rule.
4. What is the Texas sales tax exemption for rainwater collection?
Texas Tax Code Section 151.355 provides that all equipment, labor, and materials required to set up a rainwater harvesting system will be exempt from state sales tax. You must submit tax exemption form 01-339 to the seller when you buy it.
5. Is there any rebate for rainwater collection in Texas?
Yes. The San Antonio Water System provides rebates for cities that install cisterns larger than 500 gallons. There are many other incentive programs available in the state of Texas for other cities and counties. Check with your local city water department or county extension office for current programs.
6. Is it possible to drink collected rainwater in Texas?
Although Texas law does not prohibit the potable use of collected rainwater, guidelines for potable use of collected rainwater consistently recommend proper filtration and treatment before any potable use of collected rain water for drinking, cooking, or tooth brushing. Collected rainwater is suitable for most uses, including outdoor irrigation, as long as it is not used for potable water.

