PIERRE, S.D. – Today, the South Dakota Department of Agriculture and Natural Resources (DANR) announced that the Board of Water and Natural Resources has approved $38,934,341 million in loans and grants for drinking water and solid waste projects in South Dakota.
The $38,934,341 total consists of $19,640,000 in low-interest loans, including $726,000 of principal forgiveness and $19,294,341.77 in grants to be administered by the Department of Agriculture and Natural Resources.
Funds were awarded from DANR’s Drinking Water State Revolving Fund Program, Drinking Water Emerging Contaminants for Small or Disadvantaged Communities funds, American Rescue Plan Act funds, and Solid Waste Management Program to the following:
- Aberdeen received a $2,500,000 Drinking Water State Revolving Loan Fund Program loan to construct a 1.5-million-gallon elevated water tower and a 16-inch transmission line to connect existing residents in the northeast part of the city. The city received a prior $10,000,000 loan for this project and this request will complete funding for the project. The loan terms are 3.75% for 20 years.
- Clay Rural Water System received a $16,505,000 Drinking Water Emerging Contaminants for Small or Disadvantaged Communities grant to connect to the city of Elk Point by installing approximately 23 miles of pipe, a 500,000-gallon storage tank, a booster station, and a master water meter.
- Elk Point received a $730,000 Drinking Water State Revolving Loan Fund Program loan to connect its existing water system to Clay Rural Water System by installing a new 1,400-foot watermain. The loan terms are 3.75% for 30 years.
- Kingbrook Rural Water System received an additional $250,000 in ARPA grants funds to make upgrades at two water treatment facilities, upgrade or install four pump stations, construct an elevated tank near Arlington, and replace a pipeline along Highway 25 north of DeSmet. Previous funding for this project was approved in April 2022 and June 2024. The additional grant award brings the ARPA grant total for this project to $15,122,298.
- Mid-Dakota Rural Water System received an additional $600,000 in ARPA grants funds to update the existing water system by installing an advanced metering infrastructure system, paralleling of pipe, addition of a new backwash recovery system, and additional membrane capacity. Previous funding for this project was approved in April 2022, June 2024, and January of 2026. The additional grant award brings the ARPA grant total for this project to $22,215,489.
- Milbank received a $10,000,000 Drinking Water State Revolving Loan Fund Program loan to install package filters and an aeration unit to its water treatment system. The loan terms are 3.75% for 20 years.
- Northwest South Dakota Regional Landfill received a $129,000 Solid Waste Management Program grant and a $502,000 Solid Waste Management Program loan to replace aging landfill equipment and purchase a new bulldozer, roll-off trailer, and 10 garbage dumpsters to maintain efficient operations. The loan terms are 3.50% for 10 years.
- Randall Community Water District received a $5,000,000 Drinking Water State Revolving Loan Fund Program loan to expanding system capacity to provide additional water to the City of Mitchell through a new 30-inch HDPE transmission line, booster stations, storage facilities, and treatment facility upgrades. The loan terms are 3.75% for 30 years. Randall Community Water District also received an additional $905,000 in ARPA grants funds for the above project. The additional grant award brings the ARPA grant total for this project to $23,972,715. Total project funding in prior grants and loans for this project is over $118 million.
- Shared Resources, Inc received an additional $905,341 in ARPA grants funds to construct a new water treatment plant, well field, distribution pipeline, and two storage tanks. Shared Resources is a joint effort between Minnehaha Community Water Corporation and the Big Sioux Community Water System. Previous funding for this project was approved in April 2022, June 2024, May 2025, January 2026, and June of 2026. The additional grant award brings the ARPA grant total for this project to $52,054,238
- Webster received a $908,000 Drinking Water State Revolving Fund Program loan with $726,000 in principal forgiveness to replace 1,075 outdated water meters and upgrade the city’s software and remote-reading system to improve efficiency. The loan terms are 2.50% for 10 years.
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