Plans for a Wimberley-owned wastewater treatment plant were flushed away Tuesday after city leaders chose to terminate its existing contract for the proposed project.

The decision to do so, which came via a 4-1 Wimberley City Council vote, could pave the way for the city to possibly pick Aqua Texas, a third-party provider, to operate its wastewater system. Council member Allison Davis cast the lone dissenting vote.

But the move wasn’t without controversy, as residents and city leaders clashe...