In the latest episode of The Building Texas Show, hosted by Justin McKenzie and published May 27, 2026, Johnson City Mayor Stephanie Fisher provided an in-depth look at the challenges facing the Texas Hill Country town, including a groundwater permitting standoff, a short-term rental boom, and the city's strategy to convert through-traffic into overnight tourism dollars.
Johnson City, with approximately 540 residential single-family water connections, relies solely on the Ellenberger Aquifer for drinking water. However, the city holds a permit for 200 acre-feet of Pedernales River water from the LCRA, but cannot tap it due to the need for millions in infrastructure investments. The city is currently seeking a pumpage permit increase from the Blanco Pedernales Groundwater Conservation District, a process complicated by previous administrative decisions. Fisher stated, '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. And they're just doing their due diligence. I'm glad that our groundwater district is doing what they need to do to make sure that we all have water forever.'
Another pressing issue is the proliferation of short-term rentals, with 67 of the 540 residential connections now used as Airbnbs or similar rentals. This trend is reshaping neighborhoods and adding strain to the city's water infrastructure. Fisher emphasized the need for a boutique or resort-style hotel to anchor tourism and alleviate pressure on the housing market. She sees a hotel, ideally on the river, as the single biggest unlock for both housing and tax base.
The podcast also highlighted Johnson City's assets, including the Science Mill, the LBJ National Historic Park, the Old Settlement, the Exotic Resort Zoo, and the annual fair and rodeo weekend. Despite these attractions, the town struggles to get visitors to stay overnight, as it is the last stop before Fredericksburg and a cut-through to Lake LBJ. McKenzie contrasted Johnson City's situation with 100-year water planning efforts in Midland and Lubbock, noting that Hill Country communities depend on aquifer recharge in 15-year rainfall cycles.
The episode, titled 'Johnson City, Texas Has a Water Crisis Nobody's Talking About,' is available on YouTube and wherever podcasts are heard. It is sponsored by Chisos Boots. The discussion underscores the broader Hill Country affordability crisis and the critical need for sustainable water management and economic development strategies.
