VMUD#2 is a tax-exempt entity, created by an order of the Texas Water Rights Commission (Predecessor to the Texas Commission of Environmental Quality, TCEQ), effective March 15, 1972, in accordance with the Texas Water Code Chapter  54 as amended. The Board held its first meeting on May 1, 1972 and  the first bonds were sold September 28, 1973, in the amount of $2.6 million. The  District provides water & sewer services to approximately  4,217 acres of land  that includes the Town of Rancho Viejo, Texas and the River  Bend Resorts.  The District also  furnishes irrigation water to land areas within and outside the District’s  boundaries. As a conservation and reclamation District, it is empowered, among  other things, to purchase, construct, operate and maintain all works,  improvements, facilities, any plants necessary for the supply and distribution  of water, the collection, transportation, and treatment of wastewater, and the  control and
​diversion of storm water.