State Drinking Water Program


  • Privately-owned community water systems;
  • Privately-owned nonprofit, noncommunity public water systems; and
  • Borrowers must be reviewed and recommended by the Agency of Natural Resources.

Use of Proceeds

  • Obtain requisite permits, design, plan, construct, repair or improve an existing eligible water system to comply with federal and state standards.

Loan Rates and Terms

  • Term of up to 20 years – up to 30 years for nonprofit community systems serving low-income residents;
  • Repayment deferred for one year from completion of project; and
  • Administrative fees in lieu of interest rates are set for each project based on the average household income of the water system users, and range from 3% to minus 3%.


  • No fees are charged.

Application Process

  • All loans are approved by VEDA and the Agency of Natural Resources;
  • Applicants are advised to discuss their proposed project with the Agency of Natural Resources and VEDA Staff prior to submitting an application; and
  • Applications may be obtained from either the Agency of Natural Resources or VEDA.

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