Harlingen officials are reviewing a WaterWorks agreement to see whether the city has grounds to challenge it. Residents have protested the contract for months, arguing it could sell drinking water to a data center for as long as 50 years.

The WaterWorks board of directors unanimously approved the contract in September 2025. Under the deal, the agency would provide RGV Property Group with up to 4.6 million gallons of treated sewer water a day for a proposed 1,785-acre data center campus outside Harlingen's city limits. WaterWorks would supply potable water when effluent falls short.

City Attorney Mark Sossi said Tuesday that the city has questions about a clause that offers the company the in-city commercial rate. He said the City Charter gives the city commission sole authority to set water rates, and that the city is looking at its legal options. WaterWorks charges commercial customers $1.83 per 1,000 gallons inside the city and $2.75 outside. The contract offers effluent water at 75 cents per 1,000 gallons, and would sell water for about $1.2 million a year.

WaterWorks board President Michael Garza referred questions to General Manager Marie Leal. She did not respond to requests for comment.