Central South Dakota water projects awarded approximately $3.5 million in loans and grants

The South Dakota Department of Agriculture and Natural Resources (DANR) Board of Water and Natural Resources has approved (March 26, 2026) $150.7 million ($150,781,741) in loans and grants for drinking water, wastewater, and solid waste projects across the state.

The total consists of nearly $134 million ($133,891,400) in low-interest loans– including almost $17.9 million ($17,884,000) of loan forgiveness,– and almost $16.9 million ($16,890,341) in grants to be administered by DANR.

The monies were awarded from DANR’s Drinking Water State Revolving Fund Program, Clean Water State Revolving Fund Program, Consolidated Water Facilities Construction Program, Water Environment Fund, General Fund grants, and Solid Waste Management Program.

In central South Dakota:

• Gregory received a $1.75 million Clean Water State Revolving Fund Program loan to upgrade the wastewater collection system along the community’s south side and northern boundary. The loan terms are 4.00% for 30 years. Gregory also received a $975,000 Drinking Water State Revolving Fund Program loan to replace an aging cast-iron and asbestos cement water main with a new 6- and 8-inch PVC water main along the community’s south side and northern edge. The loan terms are 3.50% for 30 years.
• Dakota Mainstem Regional Water System received a $750,000 Water Environment Fund grant to continue completion of a feasibility study to determine the viability and costs to provide water and system interconnects throughout east central and southeastern South Dakota to assure water availability to meet current user needs and provide for future growth.
• WEB Water Development Association received a $290,400 Consolidated Water Facilities Construction Program grant to increase the watermain from a 2-inch to 3-inch line allowing them to serve Wecota customers as individual users and remove them as a water distribution system.

Other entities that were allocated funding are:

• Aberdeen received a $16,198,000 Clean Water State Revolving Fund Program loan to cover the remaining costs and contingencies of completing their wastewater treatment facility. The loan terms are 4.00% for 30 years.
• Belle Fourche received a $623,000 Drinking Water State Revolving Fund Program loan to finishing drilling a new well to increase water supply to the Hat Ranch Well subdivision. This project previously received funding in 2022. The loan terms are 3.50% for 30 years.
• Belle Fourche also received a $5,123,000 Drinking Water State Revolving Fund Program loan to replace its Springs Waterline, which was constructed in the 1920s and has outlived its useful life. The Springs Waterline replacement project will enable additional water supply and increase the reliability of the system. The loan terms are 3.25% for 30 years.
• Belle Fourche also received a $2,552,400 Clean Water State Revolving Fund Program loan, and a $283,600 Solid Waste Management Program grant to construct a new landfill cell in area 3 at the landfill. The loan terms are 3.75% for 20 years.
• Brookings-Deuel Rural Water System received a $4,700,000 Drinking Water State Revolving Fund Program loan to relocate and replace lines along Highway 15 as reconstruction of Highway 15 occurs. The loan terms are 4.75% for 30 years.
• Brookings-Deuel Rural Water System also received a $1,300,000 Drinking Water State Revolving Fund Program loan with 100% principal forgiveness to install a new looped system in the Elkton service area. This project includes providing water to Ward so they can discontinue use of their existing water source, which has elevated manganese levels.
• Bryant received a $2,259,000 Clean Water State Revolving Fund Program loan with $1,298,000 in principal forgiveness to make improvements to their wastewater collection system by replacing several blocks of aging infrastructure. The loan terms are 4.00% for 30 years.
• Bryant also received a $2,643,000 Drinking Water State Revolving Fund Program loan with $2,116,000 in principal forgiveness to upgrade its water distribution system, including replacing several blocks of aging infrastructure. The loan terms are 3.50% for 30 years.
• B-Y Water District received a $6,075,000 Drinking Water State Revolving Fund Program loan to add automated meter readers to their existing system and upgrade their existing meters for compatibility with the new system, valves, and backflow preventers. The loan terms are 3.25% for 10 years.
• B-Y Water District also received a $5,300,000 Drinking Water State Revolving Fund Program loan to relocate a pump station and water transmission infrastructure to maintain continuity of operations during a highway realignment project. The loan terms are 3.75% for 30 years.
• Canistota received a $3,612,000 Clean Water State Revolving Fund Program loan with $2,513,000 in principal forgiveness and a $500,000 General Fund grant to upgrade its current sanitary sewer and storm sewer systems. The loan terms are 4.00% for 30 years.
• Canistota also received a $3,640,000 Drinking Water State Revolving Fund Program loan with $2,912,000 in principal forgiveness to remove and replace parts of their water main and replace the existing water tower with a 50,000-gallon elevated water tower. The terms of the loan are 3.75% for 30 years.
• Clear Lake received a $2,130,000 Clean Water State Revolving Fund Program loan to make improvements to their storm sewer system, including removal and replacement of pipes and stormwater structures and the addition of concrete curb and gutter. The loan terms are 4.00% for 30 years.
• Clear Lake also received a $2,496,000 Drinking Water State Revolving Fund Program loan with $1,361,000 in principal forgiveness, and a $200,000 Consolidated Water Facilities Construction Program grant to improve their existing water distribution system in the southeast part of the city. The loan terms are 4.00% for 30 years.
• Crooks received a $2,334,000 Clean Water State Revolving Fund Program loan, and a $696,000 Consolidated Water Facilities Construction Program grant to replace their clay sanitary and storm sewer along eight blocks throughout the town. The loan terms are 3.75% for 30 years.
• Crooks also received a $2,090,000 Drinking Water State Revolving Fund Program loan to replace eight blocks of drinking water lines in the city. The existing lines are over 50 years old and have outlived their useful life. The loan terms are 3.75% for 30 years.
• Custer received a $2,650,000 Clean Water State Revolving Fund Program loan with $2,125,000 in principal forgiveness to reconstruct the 5th Street sanitary sewer corridor. Improvements include replacing clay sewer mains with upsized PVC and lowering other mains. The loan terms are 4.00% for 30 years.
• Department of Agriculture and Natural Resources received a $500,000 Water Environment Fund grant to create an online wetland screening tool. The tool will allow state and federal regulatory staff, local planning departments, developers, landowners, consultants, and the public to better understand where wetland resources currently exist.
• Elkton received a $632,000 Clean Water State Revolving Fund Program loan, and a $593,000 Consolidated Water Facilities Construction Program grant to complete Phases 3 and 4 of replacing existing vitrified clay sewer main piping throughout the city. The loan terms are 4.00% for 30 years.
• Elkton also received a $512,000 Drinking Water State Revolving Fund Program loan and an $863,000 Consolidated Water Facilities Construction Program grant for Phase 3 and Phase 4 of the replacement of existing water main throughout the city. The loan terms are 4.00% for 30 years.
• Hill City received a $1,659,000 Clean Water State Revolving Fund Program loan, a $2,000,000 Consolidated Water Facilities Construction Program grant, and a $1,000,000 General Fund grant to repair its existing wastewater treatment system and construct a second sequencing batch reactor to expand treatment capacity. The loan terms are 4.00% for 30 years.
• Hot Springs received a $9,166,000 Clean Water State Revolving Fund Program loan to replace its aging wastewater treatment facility. This includes construction of a preliminary treatment building to provide screening and grit removal, rehabilitation of the existing administration building to support continued operations, and sitework to prepare for future treatment system improvements. The loan terms are 4.00% for 30 years.
• Howard received a $2,816,000 Clean Water State Revolving Fund Program loan to upgrade its current wastewater treatment system to meet compliance requirements for its discharge permit renewal. The loan terms are 4.00% for 30 years.
• Lake Poinsett Sanitary District received a $6,299,000 Clean Water State Revolving Fund Program loan, a $2,000,000 Consolidated Water Facilities Construction Program grant, and $500,000 General Fund grant to construct a wastewater collection and treatment system removing a portion of the septic tanks and drain fields systems currently used for wastewater treatment. The loan terms are 4.00% for 30 years.
• Lemmon received a $4,700,000 Clean Water State Revolving Fund Program loan to replace and repair sanitary sewer mains throughout the city. The project also includes the repair and replacement of manholes. The loan terms are 4.00% for 30 years.
• Milbank received a $15,500,000 Clean Water State Revolving Fund Program loan, and a $2,000,000 Consolidated Water Facilities Construction Program grant to make improvements to its current wastewater treatment facility. The loan terms are 4.00% for 30 years.
• Mitchell received a $1,560,000 Clean Water State Revolving Fund Program loan to make improvements along 13th Avenue to direct stormwater towards a proposed detention pond. The project will include roadway reconstruction as well as replacement of the existing clay sanitary sewer lines. The loan terms are 4.00% for 30 years
• Northdale Sanitary District received a $1,181,000 Clean Water State Revolving Fund Program loan to replace and reroute a sanitary sewer force main. This will include approximately 2,500 feet of new line in the area. The loan terms are 4.00% for 30 years.
• Prairiewood Sanitary District received a $1,249,000 Clean Water State Revolving Fund Program loan and a $646,0000 Consolidated Water Facilities Construction grant to improve their current wastewater collection and treatment system to meet compliance requirements for its discharge permit. The loan terms are 4.00% for 30 years.
• Randall Community Water District received an additional $645,340 in ARPA grant funds to provide enough capacity to the system to allow Mitchell to connect their redundant water line as well as booster stations, storage facilities, and an upgrade to the Platte Water Treatment Plant. Previous funding for this project was approved in June of 2022. The additional grant award brings the ARPA grant total for this project to $23,067,715.
• Roscoe received a $2,260,000 Clean Water State Revolving Fund Program loan with $1,458,000 in principal forgiveness to upgrade its current wastewater treatment system to meet discharge permit compliance requirements. The loan terms are 4.00% for 30 years.
• Salem received a $1,620,000 Clean Water State Revolving Fund Program loan to repair sanitary sewer mains throughout its collection system. This also includes selective excavation and point repairs as well as improvements to the main lift station. The loan terms are 4.00% for 30 years
• Salem also received a $2,100,000 Drinking Water State Revolving Fund Program loan with $1,000,000 in principal forgiveness to make improvements to its water wells to increase well spacing, to reduce drawdown effects, and replace wells that are currently nearing their useful life. The loan terms are 3.75% for 30 years.
• Sioux Falls received a $350,000 Solid Waste Management Program grant to renovate and expand the existing Household Hazardous Waste Facility. Improvements include constructing a new storage building, loading dock repairs, and interior repairs of the existing facility.
• Valley Springs received a $2,087,000 Clean Water State Revolving Fund Program loan and a $330,000 Consolidated Water Facilities Construction Program grant to replace sanitary sewer lines throughout the city. The city also plans make improvements to storm sewers and a box culvert as well as install new curb and gutter. The loan terms are 3.75% for 30 years.
• Valley Springs also received a $1,261.000 Drinking Water State Revolving Fund Program loan to replace PVC water mains throughout the city. The loan terms are 3.75% for 30 years.
• Vermillion received a $1,015,000 Drinking Water State Revolving Fund Program loan for remaining costs to make improvements to their water treatment plant which includes replacing equipment that is deteriorated or nearing the end of design life in both the treatment plant and well field. The loan terms are 4.00% for 30 years.
• Vermillion also received a $2,132,000 Clean Water State Revolving Fund Program loan, and a $568,000 Solid Waste Management Program grant to modify their existing landfill which includes partial closure of existing cells that have reached capacity and constructing a new cell to meet future solid waste demands. The loan terms are 3.50% for 10 years.
• Viborg received a $249,000 Clean Water State Revolving Fund Program loan for Phase I collection system improvements. Phase 1 includes relocation of sanitary sewer infrastructure. The loan terms are 4.00% for 30 years.
• Viborg also received a $1,946,000 Clean Water State Revolving Fund Program loan for Phase 2 of their collection system improvements. Phase 2 includes replacement work near Peterson Drive and Pioneer Avenue, extending along Sorenson Street and Nora Street. The loan terms are 4.00% for 30 years.
• Viborg also received a $2,226,000 Drinking Water State Revolving Fund Program loan with $1,093,000 in principal forgiveness to make Phase 2 drinking water improvements which includes installing a 6‑inch water main, along with valves, hydrants and related appurtenances. The loan terms are 3.50% for 30 years.
• Viborg also received a $479,000 Drinking Water State Revolving Fund Program loan to make Phase 1 drinking water improvements. The Phase 1 project involves installing 6‑inch and 8‑inch PVC water main, along with valves and related appurtenances, along the north side of Highway 19 and on State Street south of Park Avenue. The loan terms are 3.50% for 30 years.
• Water Investment in Northern South Dakota (WINS) received a $2,000,000 Water Environment Fund grant. These funds are part of a larger total project to provide up to 42.1 million gallons per day of treated drinking water to the northeast South Dakota region through interconnections between the city of Aberdeen, BDM Rural Water System, and WEB Water Development Association. The full proposed project consists of a raw water intake, water treatment facility, three storage reservoirs, five pump or control facilities, a pressure reducing facility, and 148 miles of pipeline ranging in size from 20-inch to 54-inch.
• Watertown received a $175,000 Water Environment Fund grant to continue completion of a feasibility level study update of the Watertown & Vicinity Big Sioux Flood Control Study to be completed by the United States Army Corps of Engineers.
• Whitewood received a $1,942,000 Clean Water State Revolving Fund Program loan with $708,000 in principal forgiveness to cover increased costs of their wastewater treatment facility improvement project. The loan terms are 4.00% for 30 years.
• Wilmont received a $850,000 Clean Water State Revolving Fund Program loan to replace the 18-inch outfall line from the intersection of Park Avenue and Main Street to the wastewater treatment facility. The loan terms are 4.00% for 30 years.

Additional Details:

General Fund grants to Canistota, Hill City, and Lake Poinsett were made possible through Senate Bill 222 passed in 2026.

Appropriations from the Water Environment Fund and Consolidated Water Facilities Construction Program are funded in part by revenues from the Petroleum Release Compensation Tank Inspection Fee and the sale of lotto tickets. These appropriations provide funding for water, wastewater, and watershed projects. The Legislature annually appropriates dedicated water and waste funding for the Consolidated Water Facilities Construction Program through the Governor’s Omnibus Water Funding Bill.

The Solid Waste Management Program provides loans and grants for solid waste disposal, recycling, and waste tire projects. The Legislature annually appropriates dedicated funding for the Solid Waste Management Program through the Omnibus Water Funding Bill.

The State of South Dakota and the U.S. Environmental Protection Agency fund the Clean Water and Drinking Water State Revolving Fund Programs, which provide low-interest loans for wastewater, stormwater, water conservation, nonpoint source projects, and public drinking water system projects. The programs are funded through a combination of federal appropriations, loan repayments, and bonds.