Water Code §65.012

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.