A district may be created:
(1) to purchase, own, hold, lease, and otherwise acquire sources of water supply; to build, operate, and maintain facilities for the transportation of water; and to sell water to towns, cities, and other political subdivisions of this state, to private business entities, and to individuals;
(2) for the establishment, operation, and maintenance of fire-fighting facilities to perform all fire-fighting activities within the district; or
(3) for the protection, preservation, and restoration of the purity and sanitary condition of water within the district.
Official text of the Texas Water Code as published by the Texas Legislative Council.