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Jefferson City, TN

Jefferson City Weighs a Pause on New Building Permits as Water Plant Falls Short of Capacity

Jefferson City, Tennessee, is weighing a temporary moratorium on new developments because its water plant is producing well below its design capacity, even as the planning commission approved the 63-lot Cannon's Crossing final plat and a 39-lot site plan on Forgety Road.

By Morningline Research · November 3, 2026

Jefferson City, Tennessee, may stop issuing building permits for new developments for a while. City leaders say the town's water plant can't yet make enough water for the growth already coming. City Manager James Gallup asked the city council last month to consider a temporary moratorium. He made the same case to the Jefferson City Regional Planning Commission a week ago Monday, The Standard Banner reported.

The plant was built to make 7 million gallons a day. Public Works Director Porter Massengill told council it is producing 4.7 million gallons a day right now, according to the Standard Banner's report on the council work session.

Why the city is looking at a moratorium

"Now that we have kind of a finite number to judge against, we felt it was prudent for us to approach Council and ask for a temporary moratorium," Gallup told planning commissioners. He wants to take stock of the subdivisions already under construction and the ones coming down the pipeline.

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The pause could reach past the city limits. New Market and Shady Grove utility districts buy water from Jefferson City, and a moratorium could mean telling them that new developments in their areas can't be served.

Asked how long a pause might last, Massengill said the timeframe might have to be open-ended, with a review "every 12 months."

Where a pause would bite

Jeff Houston, who directs the city's building office, and a planning consultant with the East Tennessee Development District told planning commissioners that work can be stopped at the building permit stage. "That's the way I understand the Tennessee Code," Houston said. He also said he wants to learn more about the legal details.

City Attorney Robert Burts was asked to study the legal side and report back at the council's regular meeting on November 2, this Monday. The outcome of that meeting had not been reported when this was written.

Projects still moving

The planning commission kept approving work while the city studies the issue. Commissioners told applicants a shutdown could be coming, then voted:

Fixing the water plant

The supply problem goes back to last fall, when some of the plant's filter membranes failed. Massengill asked council for about $82,000 to pilot two ceramic membrane systems at the water plant, to find out which one would best raise output. Council agreed to consider the pilots at the same Monday meeting.

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