Groundwater Conservation Districts
The creation of groundwater conservation districts is authorized by state law (Texas Water Code, Chapter 36) and such districts are empowered and charged to conserve, preserve, protect, recharge, and prevent waste of groundwater resources within their boundaries. Groundwater conservation districts are the state's preferred method of groundwater management

Priority Groundwater Management Areas
The Texas Commission on Environmental Quality may administratively create a groundwater conservation district in response to a landowner petition only if the proposed area is included in a groundwater management area. A groundwater management area is an area delineated and designated by the Texas Water Development Board that is suitable for the management of groundwater resources. A priority groundwater management area is an area that, after extensive public participation and scientific study, is delineated and designated by the Texas Commission on Environmental Quality because critical groundwater problems exist or will exist within a 25-year planning horizon. Landowners are required to create a groundwater conservation district when the Texas Commission on Environmental Quality designates an area as a priority groundwater management area; however, if landowners do not take such action, TCEQ is mandated to do so (Texas Water Code, Chapter 35).

Headwaters Groundwater Conservation District is part of the Hill Country Priority Groundwater Management Area.

District History
Headwaters Groundwater Conservation District was created by House Bill No. 1463, Chapter 693, Acts of the 72nd Texas Legislature in January, 1991.