Texas Water Trade Uses Market Solutions to Protect Galveston Bay’s Water Supply

With Texas facing growing water shortages, Austin-based nonprofit Texas Water Trade uses market-based solutions to secure water for Galveston Bay. The organization helps protect wetlands, migratory species, and local ecosystems from drought and overdevelopment by purchasing water at critical times.

Arden Huels

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Arden Huels

Published 

Mar 28, 2025

Texas Water Trade Uses Market Solutions to Protect Galveston Bay’s Water Supply

Texas might not face a complete water crisis for several years, yet the struggle for water resources is already underway. With the increasing demand from municipalities, agriculture, rural communities, and the rivers and bays of Texas face the threat of depletion. Austin-based nonprofit Texas Water Trade is addressing this issue by securing water for Galveston Bay and other essential coastal ecosystems—not through regulation, but by purchasing it as necessary.

Established in 2018, Texas Water Trade collaborates with the Galveston Bay Foundation and regional water authorities to guarantee that the bay’s fragile ecosystems obtain adequate water supply. Their efforts hold significant importance, given that Texas’ population is expected to double by 2055, which will lead to a 35% rise in water demand.

One of Texas Water Trade’s essential strategies is “focused flow,” a method that entails acquiring water from suppliers and channeling it to the bay during crucial times. CEO Scott Moorhead refers to this approach as employing “rifle shots” to address issues of drought and overdevelopment. The Connected Coast program of the organization employs this approach to safeguard the bay’s 2,500 acres of managed wetlands, thereby preserving migratory species and local habitats.

Alongside water purchases, Texas Water Trade advocates for sustainable water management with its Net Zero Water Toolkit, which inspires developers to incorporate water reuse systems. The initiative has recently been honored with a Conservation and Reuse Award from the Texas division of the American Water Works Association.

The nonprofit's efforts are growing, highlighted by events such as the annual Trash Bash cleanup day this Saturday, where volunteers will clear debris from waterways that flow into the bay. With the increasing water challenges in Texas, market-driven conservation initiatives like these could be crucial in safeguarding the state's natural resources for the generations to come.


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