The Watauga Crime Control and Prevention District (CCPD) was created by referendum of the citizens of Watauga in March of 1996, renewed in May of 2001, November 2010 and May 2021 for a period of 10 years. 

The Watauga Crime Control and Prevention District provides for the establishment of a ½ cent sales tax on goods sold within the City of Watauga for the express purpose of funding crime control programs, including the costs of personnel, equipment, enhancements, and capital expenditures. The specific types of programs are listed in Texas Local Government Code, Title 11, Subtitle C, sub-chapter D of Chapter 363.161.

The district is governed by seven members of the Board of Directors. The Board is responsible for budgeting and managing the CCPD fund.