WOODLOCH, Texas (FOX 26) - The south Montgomery County town of Woodloch isn't really much of a town. It's basically two streets with 72 homes. But there's another 172 families who live on three neighboring streets.
They are known as the outside customers and they pay twice as much for water.
We first told you about the bizarre water billing practices in the town of Woodloch in 2015.
After years of investigating the Texas Public Utility commission found the rates to be discriminatory and ordered the town to refund about half a million dollars to overcharged customers.
But instead of abiding by the order, the town of Woodloch filed suit against the PUC. Dozens of angry residents packed Monday nights city council meeting.
Some residents say they are going to stop paying their water bills since the town is defying the PUC order.
Woodloch Mayor Diane Lincoln says the town improved the water system when it took on the outside customers, and that's why they have to pay more.
She says she's not sure what the towns next move will be, but says this is a situation with no winners.