The City of Liberty Hill obtains its water primarily from several main sources including Lake Georgetown, Lake Travis and five natural wells located throughout Liberty Hill. The water is supplied by the City of Georgetown utilities and the City of Liberty Hill Utilities. Because the drinking water provided to Liberty Hill comes almost exclusively from natural standing water, it must be treated so that it can be safe for human consumption.

According to a 2013 water quality report for the City of Liberty Hill, the water met all requirements set forth by the EPA to be considered safe for drinking and cooking. However, several contaminants were still found at levels below the established cutoff lines. Two of the contaminants found were haloacetic acid and trihalomethane which are both used as disinfectants during the treatment of natural water. Nitrite, nitrate and cyanide, most likely caused by fertilizer runoff into the water supply, were also found. Aqua Pure water filtration systems help to eliminate these trace contaminants that are found in the drinking water of Liberty Hill.