SpaceX is constructing a water pipeline to Starbase under specific conditions

SpaceX is working on a new infrastructure project at Starbase, Texas - a water pipeline that stretches from Brownsville to the newly incorporated city of Starbase. This pipeline is intended to replace the current truck-hauled water deliveries for SpaceX employees and residents.
Confirmed by the Brownsville Public Utilities Board (BPUB) COO, Mark Dombroski, a contract with SpaceX has been executed to supply the city with water. This decision raises questions as to why SpaceX is classified as an in-city nonresidential customer which benefits from cheaper rates.
The agreement underlines that SpaceX will be responsible for the costs and construction of extending the line to a metering point and other necessary improvements to facilitate water delivery to the meter, superseding the current 60,000 gallons per day limited water-hauling arrangement.
However, the access to water for non-SpaceX affiliated homes comes with its own conditions. Recently, nearly 40 properties were cut off from county water services, and Cameron County indicates it's Starbase's responsibility to restore the supply.
Starbase's city administrator Kent Myers has challenged this, citing public health and safety risks, and indicating that Starbase lacks the capacity to deliver water to these residents. Meanwhile, SpaceX has offered agreements that permit access to its water system only if residents agree to vacate during launch and operational activities. These agreements also state no liability on SpaceX for water service quality or availability and prevent legal recourse against the company.
The city of Starbase, an entity governed by SpaceX, does not provide utility services, leaving SpaceX to operate within its limits. This setup means that the new Brownsville-Starbase pipeline will only serve SpaceX's private water system, with connections at its discretion.
The pipeline project addresses SpaceX's immediate needs but does not establish a public right to water. Without a Certificate of Convenience and Necessity (CCN) from the Texas Public Utility Commission, SpaceX isn't required to provide service to third parties.
No comment has been provided by SpaceX on whether they plan to offer public utilities in the future.