Johnson City, Texas, is facing interconnected challenges of water supply and housing availability, as detailed by Mayor Stephanie Fisher on the latest episode of The Building Texas Show, hosted by Justin McKenzie. Published May 27, 2026, the episode reveals that 67 of the city's 540 residential single-family water connections are now short-term rentals like Airbnbs, reshaping neighborhoods and straining resources.
The city, located on the Pedernales River, cannot currently use the river for drinking water due to infrastructure limitations. Johnson City relies solely on the Ellenberger Aquifer, a minor aquifer off the Llano Uplift, as its drinking water source. The city holds a permit for 200 acre-feet of Pedernales River water from the LCRA but cannot harvest it without millions in infrastructure investment.
Mayor Fisher, now in her second term, addressed a groundwater permitting standoff with the Blanco Pedernales Groundwater Conservation District. She acknowledged that decisions by previous administrations complicated current negotiations. "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 said. She expressed confidence in the groundwater district's due diligence to ensure long-term water availability.
The short-term rental boom is a significant factor. With 67 of 540 residential connections used as Airbnbs, housing availability for residents is squeezed. Fisher sees a hotel, ideally on the river, as a key solution to both housing and tax base issues. The city is actively seeking a boutique or resort-style hotel to anchor tourism.
Johnson City sits on Highway 290, the last stop before Fredericksburg and a common cut-through to Lake LBJ, but visitors rarely stay overnight. The episode highlighted existing attractions: the Science Mill, 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, and the annual fair and rodeo weekend.
McKenzie contrasted Johnson City's situation with 100-year water planning efforts in Midland and Lubbock, noting that Hill Country communities depend on aquifer recharge in 15-year rainfall cycles. The capital improvement plan and a pending pumpage permit increase before the groundwater district are critical next steps.
The episode is sponsored by Chisos Boots and is available on YouTube where listeners can like and subscribe.
