Yes, collecting rainwater in Texas is legal and protected by state law. HOAs can’t ban it, and tax exemptions plus local rebates make it even more accessible. Permits are only needed for potable systems connected to plumbing. Outdoor collection needs no approval.
The state of Texas has gone out of its way to support residents who want to collect rainwater, passing laws that protect their right to do so, and even offering tax exemptions and rebates to make it more accessible. So, where does this myth come from? In many cases, it stems from confusion over local plumbing codes, old restrictions in other states, or misinformation spread by people who simply don’t know better.
In this article, I’ll break down what’s legal, when permits come into play, and how to avoid the most common pitfalls. Let’s clear the air, one rain barrel at a time.
Texas Law on Rainwater Harvesting: What the Property Code Says
Let’s start with the backbone of rainwater rights in Texas: Texas Property Code § 202.007.
This law flat-out prohibits homeowner associations (HOAs) from banning rainwater harvesting systems on residential property. That means even if you live in a master-planned community with strict landscaping rules, your HOA cannot legally stop you from installing a rain barrel, cistern, or complete harvesting system, as long as your setup follows reasonable aesthetic guidelines set by the association.
But the protection goes beyond HOAs. State-level policy explicitly supports rainwater collection as a conservation strategy. Agencies like the Texas Water Development Board not only endorse the practice, they celebrate it with recognition programs like the Rain Catcher Award, which honors individuals and organizations making strides in water sustainability.
House Bill 3391 & Tax Code 151.355 Explained
Texas didn’t stop at homeowner protections. In 2011, the legislature passed House Bill 3391, one of the most comprehensive rainwater harvesting laws in the country. This bill does two big things:
Requires new state buildings, where feasible, to include rainwater collection systems in their designs.
Empowers financial institutions to issue loans for developments that rely exclusively on harvested rainwater as their water source.
Paired with HB 3391 is Texas Tax Code § 151.355, which offers a state sales tax exemption for rainwater harvesting equipment, materials, and installation labor. Whether you're buying a $25 diverter or investing in a multi-thousand-gallon cistern, you’re not paying sales tax on those purchases in Texas. And in some counties, that benefit stacks with local rebates and incentives, making your system even more affordable.
Can Cities or Counties Restrict It?
Here’s where things get a little murky, and where many of the misconceptions begin.
While rainwater collection is legal statewide, cities and counties can impose additional rules if your system is used for potable purposes (drinking, showering, or plumbing).
For example, if you plan to hook your rainwater system into your home’s water supply, you’ll likely need to follow plumbing codes, get a permit, and ensure backflow prevention is in place.
This patchwork of local oversight can cause a lot of confusion. Homeowners in cities like Houston or San Antonio have shared conflicting experiences when contacting local groundwater districts or permitting offices, some report smooth approvals, others hit brick walls or receive outdated advice.
The bottom line? If you’re collecting rainwater for outdoor use like irrigation, you’re free and clear. If you want to use it indoors, check with your municipality, but know that the state supports your right to do so when done correctly.
Do You Need a Permit to Collect Rainwater in Texas?
For most Texas homeowners, the answer is straightforward: no, you do not need a permit to collect rainwater in barrels or cisterns for non-potable uses like watering your garden, washing your car, or irrigating your lawn.
If you're setting up a basic system that captures rain from your roof and stores it for outdoor use, you're well within your legal rights, and you can do it today without any paperwork.
However, if your system is connected in any way to a public water supply, especially as a backup or supplemental source, you may need to install a backflow prevention device or create a physical air gap to ensure no cross-contamination between harvested and municipal water. This requirement helps protect public health and your local water utility’s integrity, and it’s often enforced at the city level.
When You Do Need a Permit or Licensed Installer
Planning to use rainwater for drinking, laundry, toilets, or showers? That’s where things change.
In Texas, once your system crosses into the realm of potable use, it must be:
Installed by a licensed plumber who is also a certified Water Supply Protection Specialist (WSPS).
Equipped with a backflow prevention device or air gap to protect your household and the public system.
Report to your municipality or local water utility in writing if connected to a public supply in any capacity.
Homeowners often ask, “Do I need to register my system?”
The answer depends on where you live and how your system is designed. While there's no statewide registration requirement for personal rainwater systems, some counties or cities may ask for notice or documentation, especially if your system exceeds a certain size (e.g., 500+ gallons) or connects to your plumbing.
The key here is intent. If you're keeping it simple for outdoor use, no permit, no problem. But if you're integrating it into your home's infrastructure, call your local permitting office and work with a licensed pro. Better safe than sorry.
County Confusion and Enforcement Gaps
Even though Texas backs rainwater harvesting, inconsistent communication at the county level has left many homeowners scratching their heads. Some local groundwater conservation districts don’t return calls. Others give conflicting information depending on which staffer picks up the phone.
This confusion has led some residents to avoid potable rainwater use entirely, not because it’s illegal, but because they’re worried about navigating vague rules or stumbling into red tape they weren’t warned about.
Add to that the lack of public education, some local offices don’t even have published guidance online, and it’s easy to see why homeowners still ask, “Am I even allowed to do this?”
Here’s the bottom line: you are. But when you step beyond basic outdoor use, it’s worth doing your homework, asking questions, and documenting your compliance. And if the officials you reach out to can’t answer your questions? Keep climbing the ladder. Your right to conserve water shouldn’t get lost in bureaucratic limbo.
Texas Offers Financial Incentives for Collecting Rainwater
Texas doesn’t just allow rainwater harvesting, it helps foot the bill. Thanks to Texas Tax Code § 151.355, any equipment, labor, or materials used for installing a rainwater harvesting system are exempt from state sales tax. That includes everything from the rain barrel or cistern itself to diverters, pipes, filters, and even the labor you hire to get it all set up.
This exemption applies across the board, whether you're building a small DIY system or investing in a full-home, potable-grade rain collection setup. It’s one of the clearest signals from the state that water conservation isn’t just encouraged, it’s financially supported.
If you're buying your system or parts directly (like through AquaBarrel’s online store), be sure to keep your receipts and consult your installer or tax advisor on how to properly file the exemption. Many suppliers are familiar with the process and can help you document it.
County-Level Rebates and Discounts
Beyond the state-level tax perks, many local governments in Texas offer additional incentives to make rainwater harvesting more affordable.
For example, Hays County has provided property tax credits or one-time rebates for residents who install qualified systems. Others, like Travis County and parts of Central Texas, have seasonal rebate programs offered through municipal utility departments.
To encourage innovation and recognize success stories, the Texas Water Development Board (TWDB) created the Rain Catcher Award. This annual competition celebrates individuals, businesses, schools, and municipalities that implement exceptional rainwater harvesting systems. Winners are selected not just for technical excellence but for showing how water conservation can work in real life.
Whether you're in it to save money, protect your landscape, or simply be a good steward of Texas’s limited water resources, these programs are designed to reward smart choices. Check with your local county extension office, city water department, or groundwater conservation district to see what incentives might be available where you live.
Why Texans Should Be Collecting Rainwater
Texas isn’t just a state that tolerates rainwater harvesting, it champions it. From the legal protections written into the Texas Property Code to the financial incentives in the Tax Code, everything about state policy says the same thing: collecting rainwater is smart, sustainable, and legal.
If you're a homeowner, gardener, prepper, or just someone tired of watching water pour out of your downspout and go to waste, this is your opportunity. A single inch of rain on a modest 2,000 sq. ft. roof can yield 1,000 gallons of free, clean water. Over a year, that's tens of thousands of gallons that could keep your garden alive, reduce your water bill, and even serve as backup during a drought or emergency.
Better yet, you don’t need a license, permit, or a $10,000 system to get started. You can DIY your way into rainwater harvesting today with a basic setup, or take it further with a system built for indoor use and long-term resilience.
At AquaBarrel, we’ve spent the last 20 years helping Texans, and people across the country, build reliable, legal, and long-lasting rainwater harvesting systems. Whether you’re collecting with a simple barrel or designing a multi-thousand-gallon cistern, we’ve got the gear, guidance, and grit to help you do it right.
Explore AquaBarrel’s rainwater systems and take the first step toward collecting safely, legally, and sustainably, the Texas way.