Johnson City’s Groundwater Standoff and Short-Term Rental Boom Highlight Hill Country Growth Pains
Mayor Stephanie Fisher discusses how a groundwater permitting dispute, 67 short-term rentals consuming residential connections, and the inability to tap the Pedernales River for drinking water are straining Johnson City’s infrastructure and housing market.
Johnson City, Texas, is grappling with a water crisis that threatens its ability to grow, as revealed in the latest episode of The Building Texas Show with host Justin McKenzie. Mayor Stephanie Fisher, now in her second term, detailed a groundwater permitting standoff with the Blanco Pedernales Groundwater Conservation District, a short-term rental boom that has consumed 67 of the city’s 540 single-family residential water connections, and the city’s struggle to convert through-traffic on the U.S. 290/281 corridor into overnight tourism dollars.
The city’s sole drinking water source is the Ellenberger Aquifer, a minor aquifer off the Llano Uplift. Johnson City holds a permit from the Lower Colorado River Authority for 200 acre-feet of Pedernales River water, but it cannot harvest that water without millions of dollars in infrastructure investments. “There was some previous administrations that made some decisions. I think they put the cart before the horse, and that’s causing us to have some questions asked,” Fisher told McKenzie, referring to the city’s negotiations with the groundwater district. She added, “I’m glad that our groundwater district is doing what they need to do to make sure that we all have water forever.”
The short-term rental issue is reshaping neighborhoods. With 67 of 540 connections now operating as Airbnbs, housing availability for residents is squeezed, and the city’s infrastructure faces additional strain. Fisher emphasized the need for a boutique or resort-style hotel, ideally on the Pedernales River, as a way to anchor tourism and relieve pressure on residential housing. A hotel, she argued, would boost the tax base and provide accommodations for visitors who currently pass through without staying overnight.
Johnson City sits on the Pedernales River yet cannot use it for drinking water, a paradox that underscores the broader Hill Country affordability crisis. The city is the last stop before Fredericksburg and a common cut-through to Lake LBJ, but few visitors stop for the night. Local assets include the Science Mill, the LBJ National Historic Park (including the Texas White House in Stonewall and LBJ’s boyhood home), the Old Settlement adjacent to the Science Mill, the Exotic Resort Zoo just north of town, and the annual fair and rodeo weekend. McKenzie contrasted Johnson City’s dependence on aquifer recharge in 15-year rainfall cycles with 100-year water planning efforts in cities like Midland and Lubbock.
Fisher framed a capital improvement plan and a pending pumpage permit increase as critical steps. The city must navigate these challenges while preserving its identity as a gateway to the Hill Country. The episode, published May 27, 2026, is available on YouTube and wherever podcasts are heard.