When a Highland Haven lakefront home changes hands, it may not come with the right to pump the lake. Any lakeside owner who draws water from a Highland Lake needs a Domestic Use contract with LCRA, and LCRA says taking lake water without a permit or contract is unlawful. The online application sets up a contract with a named purchaser for one household. LCRA's public materials never say the contract carries over automatically in a sale. They tell people moving in or out to contact LCRA.
That contract is one of three separate arrangements behind every lake home in this city of roughly 350 households. Drinking water comes from the city's wells. Lake water comes from LCRA under a contract in someone's name. The parks, piers and the city's best boat ramp belong to a volunteer property owners association that charges nothing. Each one has its own rules, its own drought trigger and its own way of changing over when a property sells.
The Lake Contract Has a Name on It
The LCRA Domestic Use contract covers up to 10 acre-feet a year for terms of up to 10 years. It allows lawn and garden irrigation, washing and culinary use. The water is raw and untreated. If anyone drinks it, treating it is the purchaser's job.
The cost is small. LCRA's published rate is $165 per acre-foot a year, so the 0.75 acre-foot minimum contract runs $123.75 a year. Starting with the January 2027 billing cycle, the rate goes to $175 per acre-foot, or $131.25 for the minimum. LCRA bills a year in advance and gives 30 days to pay.
The friction is about who holds the contract, since the money hardly matters. A buyer who sees a pump on the dock and a green lawn may assume the water comes with the house. What the paperwork actually shows is a contract in the seller's name for a set term. Before relying on that pump, a buyer can ask the seller for the contract details and then confirm with LCRA directly whether a new application is needed.
Two Drought Authorities, One Address
Highland Haven's tap water does not come from the lake out back. The city's 2025 drinking water report says the system supplies groundwater from the Granite Gravel Aquifer in Burnet County. So one property can sit under two separate drought authorities, depending on which tap you open.
| City tap water | Lake water for irrigation | |
|---|---|---|
| Source | Granite Gravel Aquifer wells | Lake LBJ, raw and untreated |
| Who supplies it | City of Highland Haven | LCRA, under a Domestic Use contract |
| Base cost | $59 a month for the first 2,000 gallons inside city limits | $123.75 a year at the 0.75 acre-foot minimum |
| Drought authority | Central Texas Groundwater Conservation District | LCRA's domestic-use drought plan |
| Current status | Stage 2, voluntary 10% reduction through Dec. 31, 2026 | Twice-weekly schedule posted; stage-based limits apply |
The city tariff, labeled effective January 2025, sets the $59 base charge inside the city and $64 outside it. Each additional 1,000 gallons costs $5.50 to $9.25, depending on the tier. The groundwater district moved Burnet County from Stage 3 down to Stage 2 on May 29, 2026, after May rains. The city's homepage lists a voluntary 10% reduction in effect from May 28 through December 31, 2026.
The lake side runs on its own clock. LCRA's regular domestic-use schedule allows watering twice a week at most. Odd-numbered addresses water Wednesday and Saturday, even-numbered addresses Thursday and Sunday, and only between midnight and 10 a.m. or 7 p.m. and midnight. The page also says no watering November through February. When LCRA's domestic plan reaches Stage 2, landscape irrigation drops to once a week: Saturday for odd addresses, Sunday for even. LCRA last announced that change on March 3, 2025. The two authorities set their stages independently, so a lawn on lake water and a kitchen sink on well water can be under different rules in the same week.
Why the City Spent Years Paying for Its Own Water
Until recently, the city did not own some of the ground its water came from. Two of its wells sit on about 8.35 acres next to the water plant, and the city leased them and paid royalties on the water it pumped. City Administrator Andy Adams told DailyTrib that without a purchase, the city would keep paying royalties and would lack "control over critical water infrastructure."
On November 4, 2025, voters approved a $1 million general obligation bond, 121 to 62, to buy that land and pay for upgrades. The upgrades include a generator replacement the Texas Commission on Environmental Quality requires. City officials said water system revenue would repay the bond. The city also said the new bond replaces a current one set to pay off in 2027, at a lower annual cost, while keeping water rates steady. State law still required this line on the ballot:
THIS IS A PROPERTY TAX INCREASE
The tax rate is not going up to repay the bond. The wording appears because the city is taking on general obligation debt.
For a buyer reading the city's books in October 2026, the deal is still in progress. The FY 2025–26 budget planned $1 million in bond proceeds: $75,000 for issuance, $750,000 for the land and $175,000 for water infrastructure. The newly adopted FY 2026–27 budget drops the "Johnson East Well Water Usage" line to zero and adds small amounts for maintaining the new property. Those are budget allocations. They don't prove the land has changed hands. "Water Infrastructure Bond" was a discussion item at the September 15 Board of Aldermen meeting and is on the October 6 agenda. The next update on whether the bonds have sold and the purchase has closed will come from that meeting and the ones after it.
A POA With No Dues Still Has to Pay for Things
The third arrangement is the one buyers most often misread. On many lakes, "POA" means a monthly assessment. In Highland Haven, every property owner becomes a member of the Highland Haven Property Owners Association automatically. There are no dues or assessments and no paid employees, and volunteers do the maintenance and mowing. Membership passes to the buyer with the deed.
The city, for its part, owns no parks. It handles streets, building codes, the water system and ordinances. The POA manages six parks: Dove, Highland East, Highland West, Oriole, RedBird and Swan. Dove Park is the only fully developed one. Its boat launch can handle large lake craft.
With no dues coming in, the money comes from somewhere else:
- Storage rentals. The POA rents 40 covered and 41 uncovered trailer and RV spaces plus 15 storage sheds to members. That income and donations cover its expenses.
- The Community Center. The POA owns the building and runs it under a management agreement with the Highland Haven Ladies Club.
- Stickers and guest passes. Park users need a vehicle sticker or a valid guest pass. Members get up to two free stickers, extra stickers cost $25, and a guest pass costs $5 for up to a week. Member golf carts can use the parks without either.
This model has a real track record. In September 2025, the POA's community newsletter reported approved repair funding for the Swan Park pier and the Dove Park ramp, pier and swim dock. For a buyer who wants an RV or boat trailer stored close by, the waitlist for those 81 spaces is worth asking about early. The same spaces also keep the parks running.
What a Slow Market Gives a Careful Buyer
Public figures for Highland Haven alone are only available to subscribers. Burnet County numbers give the context. In August 2026, the county's median price was $365,000, with 143 days on market and 9.6 months of inventory. In July 2026, the same figures were $425,000, 166 days and 10.4 months. The broader Highland Lakes area had 1,578 active listings in August 2026.
Inventory near ten months means buyers in this county are not competing against a dozen other offers. That leaves time to sort out the three arrangements before signing. Ask for the seller's LCRA contract, a recent city water bill, and the property's sticker and storage status with the POA. In a faster market, those questions tend to get pushed until after closing.
Questions Highland Haven Buyers Ask
Can I drink the water I pump from Lake LBJ?
LCRA supplies Domestic Use water raw and untreated, and the purchaser is responsible for any treatment, including for drinking.
Do I have to join the POA?
Membership is automatic for property owners, transfers with the deed and carries no dues. The bylaws also let the board give park use to residents who don't own property, without voting rights.
How do I get city alerts about water or drought changes?
As of September 2026, the city offers text alerts. Text "Highland Haven" to 91896 to sign up.
Before you make an offer on a Highland Haven lake home, LandMasters Real Estate can help you collect the LCRA contract, the city water account details and the POA storage status. If you're selling, start with an instant home valuation, and we'll help you have those documents ready for your buyer.
