The severe Texas droughts of the 1950s prompted the development of a comprehensive planning framework to guide the state’s water policy and investments. The Texas State Water Plan has been regularly updated since the first plan in 1961 and has developed into a system of regional water plans that define the statewide strategies to mitigate the impact of future severe droughts. In this paper, we describe the history of the Texas State Water Plan, some of its shortcomings, and provide recommendations for its improvement. We recommend that the plan include linkages between demands and supplies, allow for flexibility in regional planning, and expand its scope to allow a more holistic approach to water management.