Rainwater harvesting (RWH) is becoming increasingly popular in many regions of the United States and in other parts of the world. There has been a significant growth of RWH facilities in Texas during the last ten years. Other states such as Hawaii, Washington, Kentucky and Ohio have also been using RWH systems. The amount of rainwater collected from roof surfaces can be substantial, and can serve as a valuable source of alternate water supply. RWH benefits both the consumer and the utility. It can lower the total cost of water for the consumer, and if practiced on a large enough scale, it reduces the demand on municipal systems, delaying or eliminating the need for utility expansion. This is especially true if runoff from large paved lots is collected and used for landscape irrigation. In rural areas, RWH is competitive in cost to groundwater. Numerous examples of RWH systems in Texas are listed, and information on incentives for RWH provided by the City of Austin, Hays County and others are described. The Texas legislature has recently passed a law providing tax exemptions for RWH equipment in the state. Includes 4 references.