SB 1226 establishes a framework for the creation of regional conservation and reclamation districts in Texas. The bill applies to counties with a population of at least 3.3 million or those bordering such counties, as well as counties located on an international border with a population exceeding 400,000 and containing at least two municipalities with populations over 70,000. It authorizes the Texas Commission on Environmental Quality (TCEQ) to create districts based on petitions from municipal districts, landowners with at least 2,000 contiguous acres, county commissioners' courts, or municipal governing bodies. The districts are granted broad powers, including water security enhancement, wastewater management, infrastructure development, and the promotion of water conservation and efficiency. The bill establishes election procedures for district boards, financial reporting requirements, and transparency measures, including the maintenance of a searchable online database of expenditures and audit reports. The legislation takes effect on September 1, 2025​.