SpaceX is building a water pipeline to Starbase, its newly incorporated city in South Texas but for residents not affiliated with the company, access to that water might come at a cost beyond money.
The new line, confirmed by the Brownsville Public Utilities Board (BPUB), will replace the truck deliveries SpaceX has relied on to supply drinking water to its employees and on-site residents. Under a non-standard deal, SpaceX is covering the cost of extending the pipeline from Brownsville to a metering point. After that, the company will take over water transport to Starbase on its own system.
The setup gives SpaceX a cheaper in-city rate — despite Starbase being a separate municipality. When asked why, BPUB didn’t explain. But the agreement effectively treats SpaceX as a Brownsville customer, even as it governs its own city.
Currently, SpaceX is capped at 60,000 gallons of hauled water per day, limiting growth. The pipeline changes that, giving it room to expand housing and amenities — but not necessarily extending that benefit to others.
For those not employed by SpaceX, water access isn’t guaranteed. In fact, some properties near the pipeline were cut off from county-provided water in July, with Cameron County claiming Starbase is now responsible for those homes. Starbase pushed back, saying it lacks both the legal authority and infrastructure to serve them.
What SpaceX has offered is a document that trades water access for silence and surrender. According to reporting, the company distributed a sweeping agreement that would allow non-SpaceX residents to hook up to water and sewage — but only if they agree to vacate during launches, waive rights to sue, and accept no guarantees on water quality or supply.
The agreement is labeled “unconditional and perpetual.”
Starbase was incorporated in May with a vote that involved just a handful of properties not owned by SpaceX. Once formalized, SpaceX quickly moved to stand up its own state-regulated water system including a large tank, pumps, and service connections for 239 residential meters.
But Starbase the city doesn’t operate utilities. “These services are provided by SpaceX within the City Limits,” city administrator Kent Myers confirmed. In practice, the upcoming pipeline will feed a private, corporate-run system — not a public utility.
And while the system may resemble city infrastructure, it doesn’t carry the same obligations. SpaceX has not obtained a Certificate of Convenience and Necessity (CCN), which in Texas would require it to provide water as a regulated utility. Without one, it can choose who gets access, and on what terms.
SpaceX hasn't made any comment on whether it plans to offer public utility services in the future.
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