The Authority is charged by State Legislative mandate with three functions, which include maintenance of a Master Plan for Basin-wide development, serving as local sponsor for Federal water projects and providing services authorized by the Texas Legislature within the defined territory of the Authority. Public services currently provided and/or being developed by the Authority include wastewater treatment, water treatment, flood control, recreation, hydroelectricity, navigation, and reservoir facilities.

On a functional basis, the Authority operates as a governmental water utility. Each operating or financing endeavor of TRA is an independent financial entity. The Authority receives no revenues from a direct tax base or appropriations from the state or federal government. TRA is only compensated by those using the services for which they have contracted, and only to the degree services are received.

The Authority owns and operates eight water treatment and/or supply projects, five wastewater treatment projects, has water in four reservoirs, and one recreation project ("Projects"). The services provided by each water treatment, wastewater treatment, and reservoir project of the Authority are contracted for by cities, municipalities or districts ("contracting parties"). The contracting parties have agreed to pay their pro-rata share of the cost of debt service and operation and maintenance expenses of each project.

Each project has been set up as an individual enterprise fund, and the Authority's Board of Directors exercises oversight responsibility for each project.