Agua SUD is planning to build a new water treatment plant, but some customers are worried about their wallets.

Growth in the Peñitas and Palmview area is sparking the need for a fourth plant.

"We want to be able to provide a consistent, reliable source of water for the current rate payers and for future growth," Agua SUD District 4 Board President Jose Luis Ochoa said.

About 70,000 customers rely on Agua SUD for water. Ramiro Salinas is one of them.

He has lived in Palmview for 30 years and has seen firsthand how much his community has grown. That's why he's glad Agua SUD is planning to build a new water treatment plant.

"I think it is a good idea, because the area is growing a lot so it's kind of a good deal for the community," Ramiro said.

The Texas Water Development Board recently approved about $37 million in funding to help Agua SUD with the project. The water provider has 30 years to pay off the debt.

Salinas worries customers will have to help pay it off.

"Right now, the situation that is going on, everything that is going up, I hope they don't raise the water bills," Ramiro said.

Agua SUD's water rates have increased over the last three years by about a dollar every year.

Agua SUD leaders say they planned for the new treatment plant, which played a part in the increase, but the current operation and maintenance costs also led to higher rates.

"The rates have increased in the past, but just like everything else, it goes along with the current financial situation," Ochoa said. "We are going to see a gradual increase."

Ochoa says the fourth plant is needed to ensure they can meet the future demand.

"There is a lot of development coming towards western Hidalgo County, especially the city of Peñitas. We want to be able to provide a consistent reliable source of water," Ochoa said.

Agua SUD's General Manager Roberto Salinas gave Channel 5 News a tour of their current water treatment plant on Abram Road.

The new plant will be similar to the current one, as it will treat water from the Rio Grande. 

"That's our reservoir that is where the water comes through or diverted through irrigation district canals," Roberto said.

The current treatment plant has the ability to produce about six million gallons of water a day. The new plant would produce about five million gallons of water.

"This is going to be beneficial in the long run for our community," Ochoa said.

In February 2027, Agua SUD customers can expect to see about another dollar increase in their water rate.

The district hopes to start construction on the new water treatment plant in 2028.

Watch the video above for the full story.