SRF Drinking Water Program

Learn how your community can receive low-cost financing to help create efficient drinking water systems.


This program provides low-cost financing to help community public water suppliers comply with federal and state drinking water requirements.

The program's goals are to protect public health and strengthen compliance with drinking water requirements, while addressing the Commonwealth's drinking water needs, through affordability and proper watershed management priorities.

Eligible Projects

You can receive financial assistance for the engineering and construction of drinking water projects, such as new water treatment facilities that protect public health and improve compliance with federal and state drinking water regulations.

Eligible projects include:

  • new and upgraded drinking water treatment facilities;
  • projects to replace contaminated sources, new water treatment, or storage facilities;
  • consolidation or restructuring of water systems;
  • projects and system activities that provide treatment, or effective alternatives to treatment, for compliance with regulated health standards, such as the Surface Water Treatment Rule; and
  • installation or replacement of transmission or distribution systems.

Ineligible projects include:

  • Dams
  • Purchase of water rights
  • Reservoirs, lab fees
  • Fire protection projects
  • Other non-capital expenses


Drinking Water SRF Eligible Project Costs

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Program Details

To be considered for funding, a public water supplier must complete a project evaluation form (PEF) during the project solicitation period in May. The application requires thorough information showing the project's significant benefits to public health or drinking water quality, local funding authorization, and a commitment that the borrower can file a timely loan application. MassDEP will rank the projects using a rating system which assigns points on the basis of various criteria.

These criteria include the extent to which the project:

  • Eliminates or mitigates a public health risk
  • Is necessary to achieve or maintain compliance with applicable drinking water quality requirements
  • Is affordable to users in the service area
  • Consolidates or restructures a public water system
  • Implements, or is consistent with, watershed management plans (or addresses a watershed priority) and is consistent with local and regional growth or infrastructure plans

The current subsidy level is provided via a 2% interest loan. The Program will operate with approximately $125-$150 million in financing annually.

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