Water is more than a naturally occurring phenomenon; it is a commons resource that has become endowed with cultural meanings. While oil and energy are Texas's banner industries, there is no resource with a greater significance for the state's future than water. An understanding of the institutional framework and an awareness of how issues related to water policy is part of the puzzle of resource development and management. The challenges of water policy and management are best understood on a state-by-state basis. The current management system and statutes that govern water present many problems for future availability and use. The rule of capture is a dangerous force in Texas water management that is contributing to many of the resource allocation problems plaguing the state. The state struggles trying to reconcile political goals and scientific concerns with a complex management structure that is comprised of a blend of state agencies and localized districts. This has resulted in a policy battle between regulatory agencies, the courts, and individual landowners. Historically, the winners in this battle have been those who hold the most power.