Septic system failures are common and increasing in Terrebonne. According to the County Sanitarian, many of the systems are marginal at best with frequent and reoccurring problems.

March 19th, 2025, Deschutes County Commissioners approved Order No. 2025-007—the Annexation of Parcels within the Terrebonne Unincorporated Community Boundary into the Terrebonne Sanitary District.