Does the City of Austin have its own water rights or does it purchase its water?

Both.  The City of Austin has substantial water rights granted by the Texas Commission on Environmental Quality to divert water from the Colorado River.  However, the City’s water rights are not sufficient to meet the City’s water supply needs.  Therefore, the City has a water supply purchase agreement with the Lower Colorado River Authority (LCRA) to back up or supplement the City’s water rights.  In a typical year the City will use water from both its water rights and from its water supply agreement with LCRA.