Bear Creek Special Utility District began as Lavon Water Supply Corporation, a non-profit, member owned Corporation formed in 1965. The original Articles of Incorporation were issued to the member owned Corporation on August 7, 1965. The system was maintained and operated by contract personnel until January 1, 2005. At that time, the first full time employees were hired to maintain and operate the system. Effective June 30, 2013 the member-owned Lavon Water Supply Corporation was converted to Lavon Special Utility District, a governmental entity. Effective January 26, 2016, the Texas Commission on Environmental Quality approved the name change from Lavon Special Utility District to Bear Creek Special Utility District. Bear Creek Special Utility District provides rural water service to residents of Lavon and the surrounding communities.
Bear Creek Special Utility District has continued to grow over the years and now serves in excess of 2,300 residential meters (a population of 6,900+).