What is the ETJ in Texas, and what changes if your land is in it?

• The ETJ is land outside the city limits but right next to the city. It isn't city, and it isn't rule-free country either.
• The city can extend its subdivision rules into the ETJ. If you want to split the land or file a plat, the city often reviews it.
• The city cannot regulate the use of buildings or property in the ETJ unless another state law authorizes it. That is what most people mean by zoning.
• Counties don't zone either. In Texas, only cities adopt zoning. Counties do regulate things like subdivisions, floodplain construction and septic systems.
• Since 2023, landowners can petition to have an area released from the ETJ, with requirements and exceptions, and some cities have disputed the law.

Most of the confusion comes from assuming one office decides everything. In the ETJ, several usually have a piece.

• The city. It can apply its subdivision rules: how land is divided, plats, sometimes access and streets. What Texas law doesn't allow, absent state authorization, is telling you how you use your property or buildings.
• The county. No zoning, but it does have rules for unincorporated areas: building in a floodplain, subdivisions in some cases and, in many counties, septic permits. In Collin County, for example, if a property is outside city limits, the septic permit comes from the county.
• Deed restrictions and HOAs. If the land sits in a subdivision with recorded restrictions, those private rules can limit what you build or keep there. The county doesn't enforce them; owners or the association do.
• Special districts. Some land sits inside a water or utility district with its own tax. It shows up on the appraisal district account.

Here's what that means for you: before you buy, the question isn't "are there rules?" It's "who sets each rule, and what does it say?"

1. Confirm exactly where it sits. Most cities publish a map of their limits and ETJ. Use the address or the appraisal district account number to place the property.
2. Pull the county appraisal district account. It lists every taxing entity: county, school district, special districts and, if it applies, the city.
3. Get the deed restrictions. The title company includes them in the title commitment, the document that shows the encumbrances and restrictions on the property before closing.
4. Ask the city what applies in its ETJ. Especially if you plan to split the land, build a road or file a plat.
5. Ask the county. What permits it requires to build, for septic and for construction in a floodplain.
6. Check FEMA's flood map. The official maps come up by address.
7. Confirm water, wastewater and electricity. Who provides each, whether it's a well or septic, and what it would take to connect.

If this land is part of a bigger plan, like selling your current home to move to acreage, line up the dates on both sides from the start. That plan comes together at sell and buy.

Before 2023, Texas law had no general way for an owner to take land out of a city's ETJ. That year the Legislature passed a law that allows release by petition or by election.

• Who can ask. A resident of the area, or the owners of a majority in value of the land in the area.
• What it takes. Written signatures from more than half of the registered voters in the area, or from the owners of a majority in value according to the appraisal district, gathered within the deadline the law sets.
• What the city must do. Release the area once the requirements are met. If it doesn't act in time, the law says the area is released anyway.
• Exceptions. Some areas are excluded, such as those near certain military bases or under certain agreements with the city, and more exceptions were added in 2025.
• Disputes. Some cities have said they won't follow the law, and there are cases in court.

Once land leaves the ETJ, the county becomes the authority that regulates subdivisions there, which can change the process to divide or build. Before you build a business or construction plan on a release, confirm it with the city and your attorney.

• Assuming there are no rules outside the city. That used to be the common wisdom. In the ETJ, the city can review how land is divided, the county has its permits, and the deed can carry restrictions.
• Buying to subdivide without asking first. If the plan is to split off lots to sell or to give a child a piece, that runs through subdivision rules. Ask before you make an offer, not after you close.
• Skipping the deed restrictions. A subdivision outside town can prohibit things you take for granted: certain animals, metal buildings, a shop, a second dwelling.
• Treating ETJ release as automatic. There are requirements, exceptions and disputes. It's an option, not a guarantee.
• Forgetting water and septic. Land outside the city may not have city water or sewer. That gets checked with specialists and the county before you buy.

Picture a business owner living in McKinney who wants to buy a few acres near a small town in Collin County, build a home and put up a shop for the business.

The owner finds a tract they like. Before making an offer, we check the city map and see the land is in the ETJ. The appraisal district account shows which entities tax it. The title commitment includes deed restrictions limiting metal buildings at the front of the property. And the county requires a septic permit because there's no city sewer.

With that, the owner adjusts the plan: the shop goes in back, using materials the restrictions allow; the option period is negotiated long enough for a specialist to evaluate the soil for septic; and the budget includes the well or water connection that's needed. They buy knowing what they can do.

That's an illustration, not a real client. But it's the order that works: rules first, offer second. If you want to review your situation this way, book 30 minutes with me here.

• The city's limits and ETJ map. On the city's official site or from its planning office.
• The county appraisal district account. Taxing entities and any special appraisal, such as agricultural use.
• The title commitment and deed restrictions. The title company provides them during the purchase.
• FEMA's flood map. If there's a floodplain, ask the county what permits apply. How to read it: the flood map almost nobody checks.
• Special districts. If there's a MUD or PID, here's what to ask: MUDs and PIDs on new homes in DFW.
• Your future tax bill, not the seller's. See the tax bill on the listing won't be yours.
• Water, wastewater, power and internet. Who provides them and what's missing.

None of this is legal advice. Your attorney and title company confirm your situation.

Is the ETJ the same as being inside the city?

No. The ETJ is unincorporated land outside the city limits but next to the city. The city can apply its rules for dividing land there, but Texas law does not let it regulate how buildings or property are used unless another state law authorizes it.

If my land is in the ETJ, do I pay city taxes?

City property taxes apply inside city limits. The reliable way to confirm is your account at the county appraisal district, which lists every taxing entity on that property.

Can I get my land released from the ETJ?

Since 2023, Texas law has allowed an area to be released from the ETJ by petition, with signature and timing requirements and exceptions that were expanded in 2025. Several cities have disputed the law. Before you count on it, confirm with the city and your attorney how it applies to your land.

Who issues building permits in the ETJ?

It depends on the county and the city. Often the city reviews the plat if you divide land, and the county handles items such as septic permits and construction in a floodplain. Before you buy, ask both offices what each one requires.

Does being in the ETJ change what my land is worth or how it sells?

It changes what a buyer can do and the approvals they will face, which shapes who buys and how they compare it. That is why it pays to know the rules early, so they are explained in the listing and not in the middle of a negotiation.

If you have land in mind, or you already own some and want to know what you can do with it before you sell or build, let's go over it together with the map and the paperwork in hand. Let's talk for 30 minutes about your situation, not houses: veronicayeary.com/en/book.

Call or text 469-441-8890 · veronica@veronicayeary.com

Veronica Yeary, Realtor®, CRS · ABR · SRS · CIPS, All City Real Estate DFW.