Bill began his career in education as an instructor of history and government at San Jacinto College from 1969 to 1974. He was then elected in 1974 to the Texas House of Representatives, serving three terms during the 64th-65th-66th legislative sessions.

Bill Caraway served as Chairman of various committees during his tenure in the legislature and was a Member of the Higher Education Committee, Intergovernmental Affairs Committee and the Ways and Means Committee.

Bill authored and co-authored major legislation covering public schools, including colleges and universities, ranging from school budgetary issues to funding formulas. In 1983, after Bill Caraway's legislative service, then Governor Mark White appointed Bill to serve as a member of the Texas Higher Education Coordinating Board, serving until 1988.

Bill Caraway's business experience entails financial formations and consulting for over 20 years. He has conducted seminars at the TASA/TASB Conventions as well as other educational groups.

Bill Caraway is a recognized authority on alternative financing for Texas school districts.