Was it a community in Phoenix that voted to disincorporate and then discovered that they had no access to water and had to purchase their own at inflated prices? I think it was somewhere in AZ.
The AZ neighborhood was never incorporated but was able to buy water cheap from the city. When the city ran low they stopped selling water. Leaving the freeloaders high and dry. Iirc
In Austin, it's mainly to not have to deal with Austin policies and services. Especially APD. Most people would prefer to deal with Travis County Sheriff instead. They also prefer their own MUD districts instead of Austin utilities.