The Office of Emergency Management (OEM) is responsible for coordinating the City of Lakeway's preparation for and response to emergency situations. Lakeway is exposed to many hazards, which have the potential for disrupting the community, causing damage and creating casualties. Natural hazards include floods, tornadoes, and severe storms.

Lakeway also faces a limited threat of hazardous material accidents involving the transportation, use, and storage of chemicals. To address these potential threats, the OEM publishes the City's Emergency Management Plan.