Where is Headwaters and how far is it from downtown Austin?

Headwaters sits off US-290 in Dripping Springs (78620), between the town of Dripping Springs and Belterra, west of Austin. The developer markets it as 25 minutes to Austin. Honestly, downtown is about 25 miles: roughly 30 minutes off-peak but 45 to 55 minutes at weekday rush hour through the Oak Hill Y, where the Oak Hill Parkway (completed 2025) has helped but not erased congestion. East-side and north Austin job centers are 40-plus minutes.

Who is the developer and which builders are building at Headwaters?

Freehold Communities is the developer. Currently active builders include David Weekley Homes, Toll Brothers, Coventry Homes, Taylor Morrison, and Newmark Homes, with Ashton Woods in a final closeout. Earlier phases were also built by Drees, Trendmaker, and Dream Finders. The community is roughly 1,000 homes and now in its final phases.

What do homes cost at Headwaters?

As of mid-2026, new homes range from the mid $500s to $1.5M+. The 50-foot programs generally run about $540,000 to $745,000, 80-foot homes push near and above $960,000, and semi-custom homes reach $1.5M+. Most new-construction sales cluster in the high $600s to low $700s. Prices and any published median move, so confirm current numbers when you shop.

How high are the property taxes, and is this a MUD or a PID?

It is a MUD (Headwaters Municipal Utility District), not a PID. The 2024 Headwaters MUD rate is $0.90 per $100 (mostly debt service), on top of Dripping Springs ISD at $1.1052, Hays County at $0.3085, and fire/EMS ESDs. The combined effective rate lands near 2.4% per $100, well above City of Austin levels. It should decline as MUD bonds are retired, but budget for the high rate now.

What schools serve Headwaters?

Headwaters is in Dripping Springs ISD, one of the highest-rated districts in the Austin area. Wildwood Springs Elementary (PK-5) opened onsite within the community in August 2025, so many families can walk to elementary school. Older students attend Dripping Springs Middle School (confirm middle-school zoning, which shifted with recent rezoning) and Dripping Springs High School, a nationally ranked campus.

What are the HOA dues and what do they include?

The master association charges roughly $459 per quarter (about $1,836 per year) as of 2025, and notably includes a bulk high-speed internet package. Dues cover the resort amenities, parks, and trail maintenance. Because dues reset annually and there can be a one-time transfer or capitalization fee at closing, confirm the current figures before writing an offer.

What should a buyer's agent watch for at Headwaters?

Model the full roughly 2.4% tax rate (not just the ISD rate) from the Hays CAD account, and ask how much MUD debt remains. Confirm school zoning in writing from DSISD. Get every builder incentive documented and check whether it requires the builder's lender and title. Scrutinize lot premiums, drainage, and impervious-cover limits, and remember that in a builder-driven, final-phase community you may compete with builder inventory on resale.

An elegant white home with arched windows and a palm at golden hour in the Austin area

Master-Planned Community

Headwaters

West Hill Country, Dripping Springs, Texas. An honest, buyer-side guide to the builders, amenities, schools, taxes, and tradeoffs.

The short answer

Headwaters is a Freehold Communities master-planned community off US-290 in Dripping Springs, roughly 25 to 30 minutes west of downtown Austin. This preservation-focused, approximately 1,000-home development wraps homesites around more than 1,000 acres of greenbelt, five protected hilltops, and eight-plus miles of Barton Creek trails. Buyers get top-rated Dripping Springs ISD schools, including onsite Wildwood Springs Elementary, resort amenities, and Hill Country Modern homes, but pay a high combined tax rate driven by the Headwaters MUD.

Freehold CommunitiesDripping Springs ISDMid $500s to $1.5M+

Buyer-side notes by Luke Allen · Updated July 9, 2026· Figures approximate, verify current specifics

At a glance

The facts that actually matter

Developer: Freehold Communities
Location: West Hill Country, Dripping Springs 78620
School district: Dripping Springs ISD
Price range: As of mid-2026, new homes run from the mid $500s to $1.5M+. Coventry's 50-foot plans start around $540,000 to $745,000 and its 80-foot homes near $960,000; Ashton Woods closeout homes started near $634,000; 80-foot Executive series and semi-custom homes reach into the $900s and above, up to $1.5M+. Typical new-construction sales cluster in the high $600s to low $700s. A precise published median for the community was not found (see uncertain).
Commute: Marketed as 25 minutes west of Austin. Realistically, from the US-290 entrance to downtown Austin is about 25 miles: roughly 30 minutes off-peak but 45 to 55 minutes in weekday rush hour through the Oak Hill Y, where the new 290/71 Oak Hill Parkway (completed 2025) has helped but not eliminated congestion. East-side (Tesla) and north tech job centers are 40-plus minutes. As of mid-2026.
Scale: Roughly 1,000 planned homes on a tract reported between about 1,035 and 1,500 acres (sources vary), with more than 1,000 acres preserved as parks, greenbelt, and open space, plus five protected hilltops and 8-plus miles of trails.

Who builds here

Builders

David Weekley Homes (50-foot and 80-foot Executive series)
Toll Brothers
Coventry Homes (50-foot and 80-foot)
Taylor Morrison
Newmark Homes
Ashton Woods (final closeout phase, largely sold out as of 2025-2026)
Earlier phases also built by Drees, Trendmaker, and Dream Finders

Home types

Single-family detached, one and two-story
Hill Country Modern architecture
50-foot lot plans (roughly 1,800 to 3,000 sq ft)
60- and 70-foot lot plans
80-foot Executive series (larger, roughly 3,000 to 4,200+ sq ft)
Semi-custom and custom homes up to $1.5M+
3 to 5 bedrooms, 2 to 5 baths, 2 to 3 car garages

Lifestyle

Amenities

HW Central amenity hub
Split-level, noise-controlled resort pool with waterfall and water playscape
HW Fit fitness center with cardio, strength equipment, and group classes
The Hub Wi-Fi coffee shop / cafe
Event pavilion with outdoor fireplace
Homestead Park with croquet lawn, amphitheater, event lawn, and picnic area
Headwaters Park with trailheads, greenbelts, and Barton Creek access
More than 8 miles of hike-and-bike trails
Dog park, basketball court, playgrounds, and a play/ball field
More than 1,000 acres of preserved open space and five protected hilltops
Bulk high-speed internet included in HOA dues

Read this before the base price

Taxes

Headwaters is inside the Headwaters Municipal Utility District (a MUD, not a PID). For tax year 2024, Hays CAD lists the Headwaters MUD rate at $0.9000 per $100 (about $0.80 is debt service), stacked on Dripping Springs ISD at $1.1052, Hays County at $0.3085, and the applicable North Hays fire and EMS ESDs (roughly $0.03 and $0.078). That puts the combined effective rate near 2.4% per $100 as of 2024, well above City of Austin norms. The MUD is heavily debt-driven and should ease over time as bonds are retired and the ISD rate compresses, but budget for the high rate today.

How MUD and PID taxes work →

Monthly cost

HOA and dues

The Headwaters master association charges roughly $459 per quarter (about $1,836 per year) as of 2025, which notably includes a bulk high-speed internet package. Dues are reset annually, so confirm the current amount, plus any one-time transfer or capitalization fee due at closing, before you write an offer.

Honest tradeoffs

The pros and the cons, both

No community is perfect. Here is the case for and against, the way I would give it to a client.

The case for

Award-winning, heavily amenitized master plan (Gold Nugget Grand Award for community land plan, plus national NAHB recognition)
Onsite Wildwood Springs Elementary opened August 2025, so young families can walk kids to school and skip the morning car line, within top-rated Dripping Springs ISD
Preservation-first design: more than 1,000 acres of open space, five protected hilltops, and 8-plus miles of trails with genuine Hill Country and Barton Creek views
Strong, active builder lineup (David Weekley, Toll Brothers, Coventry, Taylor Morrison, Newmark) with 50-foot to 80-foot and semi-custom options
Bulk high-speed internet bundled into HOA dues
Close to Belterra shopping, Historic Mercer Street, and the Dripping Springs winery, brewery, and distillery scene
US-290 access with the recently completed Oak Hill Parkway improving the commute corridor

The case against

High combined property-tax load near 2.4% per $100 (2024), driven by the $0.90 Headwaters MUD on top of Dripping Springs ISD; this meaningfully raises the monthly payment versus the sticker price
Premium pricing; among the more expensive master-planned communities in Dripping Springs
The marketed '25 minutes to Austin' understates reality: 45 to 55 minutes into downtown at weekday rush hour through the Oak Hill Y, and 40-plus minutes to east-side (Tesla) and north tech job centers
HOA dues, MUD taxes, and lot premiums stack up and are easy to underestimate
Community is in its final phases, so remaining new-build lot and plan choices are shrinking and late buyers may face resale premiums
Limited walkable retail inside the community itself; day-to-day errands are car-dependent (planned commercial parcel is modest)
Regional growth is straining schools and infrastructure, which has already produced DSISD rezoning churn

On your side of the table

What a buyer’s agent watches for in Headwaters

+Pull the Hays CAD account for the specific lot and confirm every taxing unit (DSISD, Hays County, Headwaters MUD, and the fire/EMS ESDs); model the full roughly 2.4% rate, not just the ISD rate
+Ask how much MUD debt service (I&S) remains and the bond payoff trajectory; MUD rates can stay elevated for years and new bond authorizations can extend them
+Confirm current school zoning in writing directly from DSISD, not the builder flyer; Wildwood Springs Elementary is onsite but middle-school assignment shifted with recent rezoning
+Get every builder incentive in writing and read the fine print: rate buydowns and closing-cost credits usually require the builder's affiliated lender and title; compare the true cost of a buydown against an equivalent price cut
+Scrutinize lot premiums (greenbelt, hilltop, and interior lots price very differently) plus drainage, tree preservation, and impervious-cover limits
+Review the HOA governing documents and MUD disclosures separately; verify what the quarterly dues include (internet) and exclude, and the transfer/capitalization fees
+On final-phase and closeout inventory (for example Ashton Woods), builders are motivated near quarter and year-end, so there is negotiating room
+Verify MUD-provided water and wastewater service and any Edwards/Barton Springs aquifer or water-quality restrictions
+Understand resale dynamics: in a builder-driven community you may compete with the builder's standing inventory when you resell early, which can pressure appraisals and price

Current incentives

As of mid-2026, builders at Headwaters are actively courting buyers with rate buydowns and closing-cost credits. David Weekley ran promotions for the January to February 2026 and March to June 2026 windows, and had earlier advertised financing as low as 3.49% (September to November 2025). Move-in-ready and spec homes have seen roughly $10,000 to $25,000 price reductions, waived lot premiums, and closing-cost credits, while Toll Brothers typically offers design-center credits and closing-cost assistance. Most incentives are tied to using the builder's in-house lender and title company, so verify the current, community-specific offer directly and price the buydown against a straight discount.

Dated mid-2026 · Verify the current, written offer on a specific home

Good to know

Headwaters questions, answered

Where is Headwaters and how far is it from downtown Austin?: Headwaters sits off US-290 in Dripping Springs (78620), between the town of Dripping Springs and Belterra, west of Austin. The developer markets it as 25 minutes to Austin. Honestly, downtown is about 25 miles: roughly 30 minutes off-peak but 45 to 55 minutes at weekday rush hour through the Oak Hill Y, where the Oak Hill Parkway (completed 2025) has helped but not erased congestion. East-side and north Austin job centers are 40-plus minutes.
Who is the developer and which builders are building at Headwaters?: Freehold Communities is the developer. Currently active builders include David Weekley Homes, Toll Brothers, Coventry Homes, Taylor Morrison, and Newmark Homes, with Ashton Woods in a final closeout. Earlier phases were also built by Drees, Trendmaker, and Dream Finders. The community is roughly 1,000 homes and now in its final phases.
What do homes cost at Headwaters?: As of mid-2026, new homes range from the mid $500s to $1.5M+. The 50-foot programs generally run about $540,000 to $745,000, 80-foot homes push near and above $960,000, and semi-custom homes reach $1.5M+. Most new-construction sales cluster in the high $600s to low $700s. Prices and any published median move, so confirm current numbers when you shop.
How high are the property taxes, and is this a MUD or a PID?: It is a MUD (Headwaters Municipal Utility District), not a PID. The 2024 Headwaters MUD rate is $0.90 per $100 (mostly debt service), on top of Dripping Springs ISD at $1.1052, Hays County at $0.3085, and fire/EMS ESDs. The combined effective rate lands near 2.4% per $100, well above City of Austin levels. It should decline as MUD bonds are retired, but budget for the high rate now.
What schools serve Headwaters?: Headwaters is in Dripping Springs ISD, one of the highest-rated districts in the Austin area. Wildwood Springs Elementary (PK-5) opened onsite within the community in August 2025, so many families can walk to elementary school. Older students attend Dripping Springs Middle School (confirm middle-school zoning, which shifted with recent rezoning) and Dripping Springs High School, a nationally ranked campus.
What are the HOA dues and what do they include?: The master association charges roughly $459 per quarter (about $1,836 per year) as of 2025, and notably includes a bulk high-speed internet package. Dues cover the resort amenities, parks, and trail maintenance. Because dues reset annually and there can be a one-time transfer or capitalization fee at closing, confirm the current figures before writing an offer.
What should a buyer's agent watch for at Headwaters?: Model the full roughly 2.4% tax rate (not just the ISD rate) from the Hays CAD account, and ask how much MUD debt remains. Confirm school zoning in writing from DSISD. Get every builder incentive documented and check whether it requires the builder's lender and title. Scrutinize lot premiums, drainage, and impervious-cover limits, and remember that in a builder-driven, final-phase community you may compete with builder inventory on resale.

Keep exploring

Free buyer representation

Thinking about Headwaters?

Before you tour a builder in Headwaters, get your representation registered so it stays free, and get the real tax rate, incentives, and lot notes in writing. Luke replies personally.

Luke Allen

Licensed Texas REALTOR, TREC #788149

Austin Marketing + Development Group

Call 254-718-2567 Text Luke