By Michael Penn in Dripping Springs, TX on 4/28/2007
Sure sounds to me like this calls for a LOCAL, "on the ground" answer.
Are you in a local municipality, that requires permits for water hookup?
Or in a quasi-governmental district controlled by a developer?
Who actually provides the water service? What do they have to say?
What does the real estate agent or seller of the land have to say about it?
In my particular local situation where I live now, which was vacant land when I built years ago, the city required a fee for the water hookup, and once the fee was paid, the city water utility was responsible for providing the hookup, and my builder just had to do a long trench (excavator), and run water and gas lines in the trench (plumber). I remember that it was one of the major values in the lot when I purchased it that this fee had already been paid by the previous owner some years before. Due to subsequent inflation, if I'd had to pay the fee myself, it would have been almost as much as I paid for the lot.
Be sure to get solid answers to this question before you buy the land, or settle on a fair price.