Exempt vs. Non-Exempt Water Wells in Texas: What's the Difference?

Quick Answer

Exempt wells (domestic/livestock, under 25,000 gpd) face fewer GCD permit requirements but still need a TDLR-licensed driller and a state completion report.

When Texas property owners ask about water well permits, the most important first question is: Is my well exempt or non-exempt?

The answer determines how much regulatory oversight applies to your well — specifically, what the local Groundwater Conservation District (GCD) can and cannot require of you.

The Legal Basis: Water Code Section 36.117

The distinction between exempt and non-exempt wells is established in Texas Water Code Section 36.117. This section defines which wells GCDs are prohibited from regulating as production wells, protecting domestic and livestock water users from the same permitting and metering requirements that apply to large irrigation or commercial water supply operations.

An exempt well, under state law, is:

Used for domestic or livestock purposes
Producing less than 25,000 gallons per day

That 25,000 gpd threshold is approximately 17.4 gallons per minute sustained production. The average household uses 200–400 gallons per day indoor and outdoor combined — exempt classification applies to virtually every residential domestic well. In a county with a Groundwater Conservation District, the local district’s rule (not this state volume) governs — some North Texas districts exempt domestic use by category regardless of pump capacity, while others use a pump-capacity test regardless of use.

Side-by-Side Comparison

Requirement	Exempt Well	Non-Exempt Well
TDLR-licensed driller	Required	Required
TDLR well construction standards	Required	Required
State completion report (filed with TDLR)	Required	Required
GCD pre-drilling permit	Varies by district (often required)	Required
GCD production permit	Not required (state exemption)	Required
Production metering	Not required (exempt)	Often required
Periodic production reporting	Not required (exempt)	Often required
Production limit imposed by GCD	Not applicable	Yes — set in permit

What Non-Exempt Wells Look Like in Practice

Non-exempt wells are most commonly:

Irrigation wells — watering crops, pastures, or large turf areas
Commercial or industrial supply wells — serving a business, processing facility, or subdivision water supply
High-volume livestock operations — feedlots or dairy operations with large herd water demand

In North Texas, the most common non-exempt well situation for private landowners is a pivot irrigation system or a well supplying a small rural water system serving multiple homes. If you are planning a well primarily for field irrigation, assume you need a full GCD production permit.

The GCD Complication: Exempt Doesn’t Always Mean No Permit

Here is where confusion arises. The state statutory exemption says GCDs cannot require a production permit for exempt wells — but it does not say GCDs cannot require any interaction with the district.

Many GCDs in North Texas require one of the following, even for exempt domestic wells:

A registration or notification filing (simpler than a full permit)
A simplified permit application with a shorter review process
Confirmation that the well meets spacing requirements before drilling

In practical terms, this means “exempt” reduces — but does not eliminate — the pre-drilling process for residential wells in most GCD counties. Your driller handles this as part of the project.

GCD Exemption Thresholds Across the Service Area

All North Texas GCDs must respect the state statutory floor, but each defines the exemption its own way — typically by use category plus a pump-capacity test rather than the 25,000-gallon volume. Confirm with the specific district:

GCD	Counties	Exemption Threshold
North Texas GCD	Collin, Cooke, Denton	Capacity test: 17.36 gpm or less as equipped, regardless of use (Rule 3.7)
Upper Trinity GCD	Wise, Parker, Hood	Domestic/livestock/ag, no volume cap; 17.36 gpm for other uses (Rule 3.1)
Red River GCD	Grayson, Fannin	Confirm with Red River GCD
Prairielands GCD	Johnson, Ellis, Somervell	Confirm with Prairielands GCD
Northern Trinity GCD	Tarrant	Confirm with Northern Trinity GCD
Middle Trinity GCD	Erath	Confirm with Middle Trinity GCD

For non-GCD counties (Dallas, Kaufman, Rockwall, Hunt, Navarro, Palo Pinto), the state exemption is the only relevant threshold — there is no district to confirm with.

We can tell you how your proposed well will be classified and what the permitting path looks like for your specific county. Call us before you start planning — classification affects the project timeline.

Frequently Asked Questions

What makes a water well 'exempt' in Texas?

Texas Water Code Section 36.117 defines the statewide exemption. Under it, a well is exempt if it is used for domestic or livestock purposes and produces less than 25,000 gallons per day (approximately 17.4 gallons per minute). That volume figure is the state default; in a county with a Groundwater Conservation District, the district's own rule controls — some North Texas districts exempt domestic and livestock use by category regardless of pump capacity (Upper Trinity GCD), while others apply a straight pump-capacity test regardless of use (North Texas GCD's 17.36 gpm rule). Most residential wells fall well below any of these thresholds — the average household uses 200–400 gallons per day indoor and outdoor combined. The exemption protects domestic well owners from the production permit and metering requirements that apply to large irrigation or commercial water supply wells.

Does 'exempt' mean no permit is required?

Not always. 'Exempt' means exempt from GCD production permits and metering requirements under Water Code Section 36.117 — it does not automatically mean exempt from all GCD permitting. Many Groundwater Conservation Districts still require a simplified permit application or a registration notice even for exempt domestic wells. Individual GCDs can adopt rules that impose some requirements on exempt wells. Always confirm with the specific GCD for your county before assuming no permit is needed.

What requirements still apply to exempt wells?

Regardless of exempt status, every Texas water well must: (1) be drilled by a TDLR-licensed Water Well Driller; (2) be constructed to TDLR well standards under 16 TAC Chapter 76, including casing, grouting, and setback requirements; and (3) have a completion report (the State of Texas Well Report) filed by the driller within 60 days of completion under 16 TAC §76.70(1). The GCD may also require a simplified permit or registration. Exempt status reduces regulatory burden but does not eliminate it.

What is a non-exempt well and when does it apply?

A well is non-exempt if it produces 25,000 gallons per day or more, or if it is used for purposes other than domestic or livestock use (such as irrigation, industrial, or commercial supply). Non-exempt wells are subject to the full range of GCD permit requirements: a production permit before drilling, often production limits or metering requirements, and periodic reporting to the district. Irrigation wells for agricultural operations are the most common non-exempt wells in North Texas.

Can a domestic well become non-exempt?

A well classified as a domestic exempt well does not automatically become non-exempt just because usage increases. However, if you begin using a domestic well for purposes that push production above the applicable threshold — or if the use changes from domestic to irrigation or commercial supply — the well may need to be re-classified and a GCD production permit obtained. Adding a large irrigated pasture or switching to commercial use are scenarios that warrant checking with the GCD.

Does the 25,000 gpd threshold apply in all GCDs?

The 25,000 gpd figure is the state statutory baseline under Water Code Section 36.117 — a GCD cannot use it to force all domestic wells into the production-permit system. In practice, districts define the exemption their own way. The Upper Trinity GCD exempts domestic, livestock, poultry, and agricultural use by category regardless of pump capacity and applies a 17.36 gallons per minute capacity test to other uses, while the North Texas GCD uses a straight capacity test — wells equipped to produce 17.36 gpm or less are exempt regardless of use. This is why you should confirm the exact rule with the specific GCD for your county.

Get Practical Next Steps

Local rules can vary by property and use. Tell us about the project and we can help you think through next steps.