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The San Antonio City Council voted unanimously to deny the formation of a municipal utility district for the Guajolote Ranch Development, which would have financed infrastructure for nearly 3,000 homes. Concerns over water quality risks and long-term tax implications influenced the decision.

The developer, Lennar Corp., may seek a wastewater service agreement with San Antonio Water System or independently petition the Texas Commission on Environmental Quality if no agreement is reached within 120 days. The project remains contentious amid ongoing legal challenges.