1/22/2026
Boy, did I ever get this wrong!! Just when I was beginning to think of Arch Ray as an advocate for water conservation and the environment, we learn that, instead of following the Underground Water District rules for obtaining a permit before drilling wells, Arch Ray goes and drills not one well without a permit but two wells without a permit. AND they ignored basics like setback rules. Here’s the kicker: Arch Ray knows the rules as they have drilled wells in the past and failed to get permits before drilling. Apparently they have decided the rules do not apply to them and did it again.
If you are an Arch Ray neighbor, your own wells are at risk. If you own a home or a parking spot for your tiny home in Arch Ray, you are at risk of turning on your tap one day and having nothing come out. Setbacks are important because spacing wells apart and apart from property lines can help prevent dry wells. Apparently Arch Ray does not think rules apply to them. Is this how good neighbors act?
See the below article in today’s paper for details:
CONSERVATION
Arch Ray digs two unauthorized wells
Facility to work toward compliance with water district
By Annie Bresee
Standard-Radio Post reporter
The Hill Country Underground Water District is working with Arch Ray on the River, after the resort and condominium facility dug two unathorized wells on its property.
This is the second and third offense for the property located off of U.S. 290. They dug a previous unathorized well on the property in 2023. In late 2024, the HCUWD saw drilling activity had happened through the state drilling report database. Arch Ray had dug two additional wells on the site.
“All wells require, at a minimum, notification of drilling. Because of the use of these wells, they require authorization,” said Paul Baab, director of the HCUWD.
After notifying the owners of the violation, Arch Ray on the River sent applications for authorizations, according to Baab. The two parties are working to get the applications within compliance.
“The district, we’re a local government, we only have civil authority. We can’t levy fines or penalties,” Babb said.
The district could go through the district court system to seek a settlement. However, Babb said they always work to bring the well owners into compliance before taking legal steps.
Babb added the goal is always to have “the highest level of conservation and still uphold property rights.”
In 2025, the Baxter family, owners of Arch Ray, changed its intent to discharge treated effluent into the Pedernales River, and use the treated water on its grounds.
8/08/2025
After publication of the article that indicated that the leadership at Arch Ray had determined that a no discharge permit would be the best for their resort, we expected to hear more from them. All is quiet, however.
We have heard rumors that they have determined to put in a pipe that moves effluent from the neighborhood to the resort but we have not been able to confirm that yet. We also heard that the pipe would go under the river which is a whole lot safer than piping along the bridge.
They are still selling lots in the neighborhood.
We saw a few piles of dirt deposited near the resort and thought maybe they might be commencing to build the hotel but nothing more has happened. Meanwhile, every square inch of available property in town is getting picked up for hotels. May be that this is not the right time to build another hotel.
Click on the link below to read the full article from the Fredericksburg Standard.
Arch Ray is on 290E and currently is a very large facility including a restaurant, winery, tasting room and brewery. While they started out seeking a permit to discharge 35,000gal/day of treated wastewater into the Pedernales River, they have decided to go with a Zero Discharge permit. This is really good news as it means that they will keep all treated wastewater on their own site using it for irrigation/landscaping. They have also committed to providing Dark Skies friendly lighting and to landscape with Native Plants. We look forward to Dark Skies over Arch Ray and Native Plants making their facility look like it was meant to be where it is.