Drinking Water State Revolving Fund Program (DWSRF) Basics


Eligible Applicants

  • Publicly-owned community water systems (e.g., counties, cities and districts)
  • Privately-owned community water systems (e.g., for-profit water utilities, non-profit mutual water companies)
  • Non-profit or publicly-owned non-community water systems (e.g., public school districts)
  • Community water systems created by the project

Eligible Projects

Planning/design and construction of drinking water infrastructure projects including:

  • treatment systems
  • distribution systems
  • interconnections
  • consolidations
  • pipeline extensions
  • water sources
  • water meters
  • water storages

Financing Terms

Interest Rate: DWSRF Interest Rate and MHI

  • Interest rate may vary each calendar year; it is 50% of the average interest rate paid by the state on general obligation bonds issued in the prior calendar year.


  • 5- or 10-year term at Applicant’s request


  • Disadvantaged and Severely Disadvantaged Communities – 40 years or Project useful life
  • All others – 30 years or Project’s useful life

Loan Repayment

  • Repayment is due annually
    • 1st Principal and interest payment after project completion:
      • 12 months for non-Disadvantaged and Severely Disadvantaged Communities
      • 18 months for Disadvantaged and Severely Disadvantaged Communities

Pre-Payments Require Division of Financial Assistance Deputy Director Approval
Principal Forgiveness: May be available to small water systems serving disadvantaged communities

Questions or Comments?

Please contact us at DrinkingWaterSRF@waterboards.ca.gov or phone (916) 327-9978.