This report examines the problems of water pollution, in the Rio Grande/Rio Bravo along the Texas-Mexico border, and possible solutions for it through interlocal cooperation agreements between Texas and Mexican cities. State and federal agencies, of both countries, are identified along with a description of their responsibilities and jurisdictions as it relates to water issues in this region. Legal structures and financing mechanisms for the creation of binational, joint-municipal wastewater treatment plants are discussed. Lastly, a step-by-step approach to the creation of such an entity is also included.