The amendment would establish in the Texas Constitution the Texas Water Fund administered by the Texas Water Development Board. The board would be authorized to transfer funds between the state Water Fund and the Water Assistance Fund No. 480, the New Water Supply for Texas Fund, the Rural Water Assistance Fund No. 301, or the Statewide Water Public Awareness Account.

The Water Fund would consist of money allocated by the state legislature, gifts and grants, and investment earnings of the fund. The amendment would require no less than 25% of the initial allocation to the fund by the legislature to be transferred to the New Water Supply for Texas Fund. Money appropriated by the state legislature to the fund would be excluded from the state's appropriation limit.