Glossary
Certificate of Convenience and Necessity (CCN)
The state-granted exclusive right for a specific utility to provide retail water or sewer service in a defined geographic area.
In Texas, retail water and wastewater service areas are allocated by Certificates of Convenience and Necessity, administered under Texas Water Code Chapter 13 and the rules at 16 Texas Administrative Code Chapter 24. A CCN gives one provider the exclusive right — and the obligation — to serve a defined area. For a developer this matters because you do not get to choose your water provider: whoever holds the CCN over your parcel is who you must deal with, whatever their capacity, fees or timeline. Confirming the CCN holder is an early diligence step, because the answer determines cost, schedule and sometimes whether the project is possible at all.