(a) The corporation is a water supply corporation in Hidalgo and Starr Counties created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution, and operating in accordance with Chapter 67, Water Code.(b) The district is:(1) a special utility district in Hidalgo and Starr Counties created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution, and operating in accordance with Chapters 49 and 65, Water Code;(2) a retail public utility as defined by Section 13.002, Water Code; and(3) the successor in interest to the corporation.(c) The corporation shall be dissolved and succeeded without interruption by the district as provided by Subchapter A1. Added by Acts 2005, 79th Leg., Ch. 1057 (H.B. 1358), Sec. 2.01, eff. September 1, 2005.Amended by: Acts 2007, 80th Leg., R.S., Ch. 1430 (S.B. 3), Sec. 9.03, eff. June 16, 2007.