Pre-annexation, there was a municipal utility district that was the retail water utility. I believe it got its wholesale water from the City of Austin.
When Lost Creek was annexed in 2015, the MUD was dissolved, and the retail water utility became the City of Austin. And the City of Austin is going to continue being the retail water utility post-disannexation.
The problem is the size of the surface water tanks. Every neighborhood has to have surface water-storage capacity to keep pressure in the water lines. For Lost Creek, that surface storage is the tanks that are at the highest point in the neighborhood at Lost Creek Blvd and Quaker Ridge.
Those storage tanks are plenty to meet demand in Lost Creek and keep pressure in the water lines. And generally speaking, they're enough to meet fire demand. But if there's a wildfire down in the Barton Creek Greenbelt that sweeps up into the neighborhood, Lost Creek is turbofucked. And that has been pointed out to the City for decades--first when it was the wholesaler and over the past decade when it was the retail provider and provider of emergency services. The City has shrugged its shoulders.
The whole history is just kind of indicative of the benign neglect with which the City has treated Lost Creek, and why I scoff at jimmyjazz when he cites the wildfire risk as a reason to oppose disannexation.