In a recent episode of The Building Texas Show, host Justin McKenzie sat down with Johnson City Mayor Stephanie Fisher to discuss the town's escalating water crisis and the impact of short-term rentals on the community. The episode, titled "Johnson City, Texas Has a Water Crisis Nobody's Talking About," was released on May 27, 2026, and highlights the challenges facing this Hill Country gateway town situated on the Pedernales River but unable to use its water for drinking.
Johnson City relies solely on the Ellenberger Aquifer, a minor aquifer off the Llano Uplift, for its drinking water. With approximately 540 residential single-family water connections, the city is under pressure from a booming short-term rental market. Mayor Fisher revealed that 67 of those connections are now Airbnbs, consuming a significant portion of the water supply meant for permanent residents.
The city is also navigating a groundwater permitting standoff with the Blanco Pedernales Groundwater Conservation District. Fisher acknowledged past administrative missteps that have complicated 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," she said. The city is seeking a pumpage permit increase as part of its capital improvement plan, but the district is scrutinizing the application closely.
Adding to the complexity, Johnson City holds a permit from the Lower Colorado River Authority (LCRA) for 200 acre-feet of Pedernales River water, but it lacks the infrastructure—estimated at millions of dollars—to treat and distribute it. This leaves the city dependent on an aquifer that recharges on 15-year rainfall cycles, a precarious situation compared to 100-year water planning efforts in cities like Midland and Lubbock.
Mayor Fisher sees a boutique or resort-style hotel, ideally on the river, as the key to unlocking both housing and tax revenue. Such a hotel would attract overnight visitors, who currently pass through Johnson City en route to Fredericksburg or Lake LBJ without staying. The city already boasts attractions like the Science Mill, the LBJ National Historic Park, the Old Settlement, and the Exotic Resort Zoo, but lacks accommodations to keep tourists overnight.
The short-term rental boom has reshaped neighborhoods, converting homes that could house permanent residents into vacation rentals. This exacerbates the housing crisis in a region already grappling with affordability issues. Fisher's administration is balancing the economic benefits of tourism with the need for sustainable water management and housing for residents.
The episode underscores the broader Hill Country affordability crisis and the urgent need for infrastructure investment. As Johnson City grows, the decisions made today will determine whether it can secure a reliable water future while preserving its community character. The full episode is available on YouTube and podcast platforms.
