MUDs (Municipal Utility Districts) provide water, sewer, and drainage services which are paid for through service fees (your water/sewer bill) and property taxes imposed by your local MUD. Woodlands residents actually receive a separate property tax bill from their local MUD in addition to the consolidated tax bill issued by the county tax office. There are 13 different MUD districts within The Woodlands and each one independently sets their own tax rate and policies and each one is governed by a board of directors elected by residents within that MUD district, providing local control. In Panther Creek, properties north of Woodlands Parkway are part of MUD #40, while properties south of Woodlands Parkway are part of MUD #07. The total tax rate imposed on property thus varies by location, depending upon which MUD serves that location.