In the arid landscape of South Texas, SpaceX is constructing a critical water pipeline from Brownsville to its company-run city of Starbase, replacing truck deliveries that capped water access at 60,000 gallons daily. But for non-SpaceX residents, this lifeline demands a startling trade: perpetual evacuation rights during launches and tests, according to contracts reviewed by TechCrunch.
Pipeline Promises Growth, Sparks Disputes
The Brownsville Public Utilities Board (BPUB) confirmed a contract with SpaceX to supply water as an “in-city nonresidential customer,” a cclassificationgrants cheaper rates despite Starbase’s incorporation as a separate municipality. SpaceX will fund the pipeline’s construction to a metering point within Starbase, after which water flows into its private utility system. BPUB COO Mark Dombroski stated this arrangement “supersedes the water hauling agreement,” with timing tied to SpaceX’s construction schedule.
The upgrade solves operational constraints for SpaceX, enabling expanded housing and amenities for employees. Yet it leaves nearly 40 non-affiliated homes stranded after Cameron County halted water deliveries in July, calling it a discontinued “courtesy.” County officials declared water delivery now “Starbase’s responsibility,” igniting a standoff. Starbase City Administrator Kent Myers countered that the city lacks “legal authority or operational capacity” to provide water, warning that the cutoff “poses safety and public health risks”.
The Evacuation-for-Water Bargain
SpaceX responded by offering affected residents access to its water and sewer systems contingent on signing an “unconditional and perpetual agreement” obtained by TechCrunch. The contract mandates residents vacate properties during “any launch, testing, and other operational activities” indefinitely. It absolves SpaceX of guaranteeing water quality or volume and blocks signees from seeking “legal or monetary recourse” against the company.
“This leverages basic human needs for operational control,” said Dr. Elena Torres, an urban policy professor at the University of Texas. “SpaceX sidesteps public utility obligations while privatizing public safety.” Notably, SpaceX holds no Certificate of Convenience and Necessity (CCN), a state authorization typically required to retail water, freeing it from obligations to serve third parties.
A City Built by SpaceX, For SpaceX
Starbase was incorporated in May 2025 after a vote open only to registered voters within its boundaries. Of 247 lots, SpaceX owned all but 10, effectively controlling the outcome. The city explicitly disclaims utility responsibilities, with Myers noting, “The City of Starbase does not provide any utility services. These services are provided by SpaceX”. This structure grants SpaceX unilateral authority over pipeline access.
Residents like Keith Reynolds, unaffiliated with SpaceX but living within Starbase, describe being abandoned. “They left everybody high and dry,” he told the San Antonio Express-News. State Rep. Janie Lopez has pledged intervention, emphasizing water access is “a basic human necessity”.
Environmental and Regulatory Shadows
The pipeline debate unfolds amid environmental scrutiny. SpaceX faces violations from the Texas Commission on Environmental Quality (TCEQ) and the EPA for unauthorized wastewater discharges from its launch deluge system. Though SpaceX claims its July permit application contained a “typo” regarding mercury levels (initially reported at 113 micrograms per liter versus the state limit of 2.1), regulators confirm a “pending enforcement action”.
A Template for Corporate Control?
Legal experts warn that the agreement sets a troubling precedent. “SpaceX transforms infrastructure into a tool of coercion,” said environmental attorney Ricardo Hernandez. “Residents trade property sovereignty for survival”. With SpaceX planning up to 25 Starship launches annually from Starbase, these evacuation terms could become routine, raising questions about corporate overreach in America’s evolving “company towns”.
As pipeline construction advances, the stark choice facing Starbase’s few independents underscores a larger tension: Where does corporate ambition end and community responsibility begin?
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