If you're thinking about buying property in Texas, particularly in the greater Houston area and other large metropolitan areas, sooner or later you'll hear the word MUD. A MUD (Municipal Utility District) is a special governmental entity created by the State of Texas whose main functions are to provide water and wastewater services and to maintain drainage facilities within its boundaries. A MUD may levy and collect taxes, issue bonds, charge for services, condemn property, enforce restrictive covenants and make regulations to accomplish its purposes. MUDs come in a variety of names - MUD, WCID (Water (16 comments)