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Wastewater and Drinking Water Program

Wastewater/Drinking Water Program

Many communities in Indiana struggle with inadequate water supply and failing wastewater treatment. OCRA is committed to improving the quality of water and wastewater in Indiana and assisting in financing appropriate water and sewer infrastructure for communities and counties that have planned and set priorities for long-term development.

The goals of the Wastewater and Drinking Water (WDW) Program are to protect health and the environment, reduce utility rates for low- to moderate-income communities, and improve rural infrastructure for long-term sustainability and growth. General eligible activities include wastewater improvements such as collection lines or treatment plans, or drink water system improvements such as water towers or distribution.

Grant amounts for communities with existing systems will be based on the current rates at the time of application and grant amounts for communities constructing new systems will be based on a verified rate study included in a Preliminary Engineering Report (PER). The amount of CDBG funds granted will be based on a $5,000 cost per project beneficiary. Maximum grant amounts are based upon user rate information, as follows:

Rates for 4,000 gallons
Maximum Grant AmountsUser Rates
(Over $50)
User Rates
($30 to $50)
User Rates
(Under $30)
Projects over $1 million in total project cost $750,000$700,000$650,000
Projects under $1 million in total project cost $700,000$650,000$600,000

The maximum award is not intended to serve as a target figure for requests for grant assistance. OCRA will review the level of grant assistance requested and will consider the appropriateness of the project’s scope, the level of demonstrated need and the financial resources of the applicant. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form. A local match of 20% of the total project cost will be required for consideration of funding.

General types of activities that are eligible for WDW funding:

  • Wastewater Improvements (collection lines, treatment plant, etc.)
  • Drinking Water System Improvements (water tower, distribution)