Johnson City, Texas, a gateway to the Texas Hill Country, faces a water crisis and a short-term rental boom that are reshaping the community, according to Mayor Stephanie Fisher in a recent episode of The Building Texas Show. Published May 27, 2026, the episode titled "Johnson City, Texas Has a Water Crisis Nobody's Talking About" features Fisher detailing the city's struggles despite its location on the Pedernales River.
Fisher, now in her second term, explained that the city relies solely on the Ellenberger Aquifer for drinking water, a minor aquifer off the Llano Uplift. The city is in the midst of a capital improvement plan and seeking a pumpage permit increase from the Blanco Pedernales Groundwater Conservation District. However, a previous administration's decisions have complicated the negotiations. "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," Fisher said. She expressed confidence in the groundwater district's due diligence to ensure long-term water availability.
Johnson City has about 540 residential single-family water connections, and 67 of those are now short-term rentals like Airbnbs. This has intensified competition for water and housing. The city holds 200 acre-feet of Pedernales River water under an LCRA permit but cannot use it without millions in infrastructure investments. Fisher identified a boutique or resort-style hotel as the single biggest unlock for both housing and tax base. A hotel on the river would help convert through-traffic on the 290/281 corridor into overnight tourism dollars.
The episode also highlighted Johnson City's tourism assets, including the Science Mill, the LBJ National Historic Park (featuring the Texas White House in Stonewall and LBJ's boyhood home), the Old Settlement, the Exotic Resort Zoo, and the annual fair and rodeo weekend. Host Justin McKenzie contrasted 100-year water planning efforts in Midland and Lubbock with Hill Country communities that depend on aquifer recharge in 15-year rainfall cycles.
The Building Texas Show, hosted by Justin McKenzie, travels the state in conversation with mayors, founders, and operators shaping Texas growth. Each episode digs into infrastructure, economic development, tourism, and community identity. The show is sponsored by Chisos Boots. This episode is available now wherever podcasts are heard, and on YouTube where listeners can like and subscribe to follow the series.
