Small Community Drinking Water (SCDW) Funding Program Basics

Small Community Drinking Water Funding is available to help small disadvantaged communities (small DACs), providing service to less than 10,000 people and having a median household income (MHI) of less than 80% the statewide MHI, implement eligible drinking water capital improvement projects.
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 storage tanks

Financing Terms

  • Financing Limit: Grants are available through the Small Community Grant Drinking Water program per the terms included in the current Drinking Water Intended Use Plan. Loans are limited only by water system's ability to borrow
  • Grants and Principal Forgiveness: May be available to publicly owned water systems or non- profit mutual water companies serving disadvantaged communities
  • Loan Interest Rate: 0% may be available to public water systems serving small, disadvantaged communities through the Drinking Water State Revolving Fund (DWSRF). DWSRF Interest Rate and MHI
  • Loan Repayment Term: up to 30 years or useful life of the project for water systems serving disadvantaged communities
  • Loan Repayment: Begins within one year after project completion
 Questions or Comments?
Please contact us at or phone (916) 327-9978