Funding Database: Drinking Water

Drinking Water State Revolving Fund

The NC Department of Environmental Quality (NC DEQ) Division of Water Infrastructure (DWI) administers the Drinking Water State Revolving Fund (DWSRF) to assist eligible public water supply systems in constructing projects that both benefit public health and improve the human environment. The federal government provides the majority of the funding, with a 20% match provided by the state. 

DWSRF is a low-interest loan program supplemented with principal forgiveness. It provides financial assistance to help recipients meet or exceed regulatory requirements. This fund supports NC DEQ’s strategic goal to strengthen North Carolina’s infrastructure through thoughtful, strategic and equitable investments in communities.

Eligible Applicants

Eligible applicants include local government units (counties, cities, towns, sanitary districts, etc.), nonprofit water corporations and investor-owned drinking water corporations.

Eligible Projects

Projects funded by the DWSRF program should provide drinking water infrastructure while promoting science-based environmental stewardship. Eligible projects include projects to address water source, treatment, storage or transmission and distribution issues.

Funding Amount

The maximum loan is $25 million. A 2% closing fee will be administered that cannot be financed.

Match Requirements

None. The state provides the match for these federal funds; however, a 2% closing fee is required.

Application Schedule

DWSRF has two funding cycles per year, typically opening in March and September. DWI will send a Letter of Intent to Fund (LOIF) to funding recipients. Recipients must send a completed engineering report within four months of receiving a LOIF, complete plans and permits within 15 months and finalize contract bidding within 23 months. Construction must start within 24 months of the LOIF.

Application Process

DWI posts the application under the “Application Forms” tab on the Applications Page. This includes a step-by-step guide for filling out and submitting an application.

Application Assistance

Contact Kavitha Ambikadevi or David Giachini with application questions.

Funding Source

The Environmental Protection Agency provides funding for the DWSRF through congressional appropriations from the Safe Drinking Water Act.