Hays County Development District No. 1 (District) was created in 2001 to finance and maintain infrastructure and provide water, sewer, drainage facilities and roads within the District.  The District manages certain operations and it contains the Caliterra subdivision as well as the Ranch at Caliterra.  The developer initially built the water, sewer, drainage and road facilities to serve the District, and the District reimburses the developer for those facilities at cost.  The District has an agreement with Dripping Springs Water Supply Corporation (the “Corporation”) and City of Dripping Springs (the “City”) for the Corporation and City to provide water and sewer service, respectively, to property within the District.  In return, the District receives treated reuse water from the City and manages a treated effluent pond and approximately 85 acres of spray fields pursuant to the City’s Texas Commission on Environmental Quality (TCEQ) reuse water permit.  This provides the added benefit that a wastewater treatment plant was not necessary for the development of the Caliterra subdivision.  Additionally, the District maintains the detention facilities, trails, street lights, and common areas that are not owned by the HOA.