FOR IMMEDIATE RELEASE: January 8, 2026 

MEDIA CONTACT: Ben Koisti, Ben.Koisti@state.sd.us  

FOR PROJECT DETAILS: Visit here 

 

DANR Announces $48.9 Million in Loans and Grants for Statewide Projects 

 

PIERRE, S.D. - Today, the South Dakota Department of Agriculture and Natural Resources (DANR) announced that the Board of Water and Natural Resources has approved $48.9 million in statewide projects. 

 

A total of $36,958,000 in state loans, including $425,000 in principal forgiveness, was authorized for drinking water and wastewater improvements. Additionally, $7,648,000 was allocated through Emerging Contaminants for Small or Disadvantaged Communities grants, along with $4,313,307.85 in additional American Rescue Plan Act (ARPA) grant funding. 

 

Funding was distributed through DANR’s Drinking Water State Revolving Fund, Clean Water State Revolving Fund, Emerging Contaminants for Small or Disadvantaged Communities grant program, and ARPA funds to the following: 

 

BDM Rural Water received an additional $233,450 in ARPA grant funds to construct a new water treatment plant, install a water reservoir, install pipe to expand the water system and loop lines for added redundancy, and replace water meters. Previous funding for this project was approved in April of 2022 and June of 2024. The additional grant award brings the ARPA grant total for this project to $5,501,878.  

 

Clay Rural Water received an additional $334,250 in ARPA grant funds to construct two ground storage reservoirs near the existing Greenfield reservoir and the Wakonda Water Treatment plant. A new booster station at the Greenfield reservoir and distribution line improvements to provide additional capacity and accommodate a Highway 46 construction project is also included. Previous funding for this project was approved in April of 2022 and June of 2024. The additional grant award brings the ARPA grant total for this project to $7,778,060.  

 

Mid-Dakota Rural Water System received an additional $917,357.85 in ARPA grant funds to update the existing water system by installing an advanced metering infrastructure system, paralleling of pipe, addition of a new backwash recovery system, and additional membrane capacity. Previous funding for this project was approved in April of 2022 and June of 2024. The additional grant award brings the ARPA grant total for this project to $21,615,489.85.  

 

Mitchell received a $3,930,000 Clean Water State Revolving Fund Program loan to upgrade the clay sanitary and storm sewer on a portion of North Ohlman Street. The loan terms are 3.75% for 30 years. 

 

Rapid City received a $14,512,000 Drinking Water State Revolving loan to make improvements to an existing well and to construct two new wells. The loan terms are 4.00% for 30 years. 

 

Shared Resources received an additional $1,500,000 in ARPA grant funds for treatment plant, well field, distribution pipeline, and two storage tanks. Shared Resources is a joint effort between Minnehaha Community Water Corporation and the Big Sioux Community Water System. Previous funding for this project was approved in April of 2022, June of 2024, and May of 2025. The additional grant award brings the ARPA grant total for this project to $50,942,148.  

 

Sioux Falls received a $7,648,000 Drinking Water Emerging Contaminants in Small or Disadvantaged Communities Grant to complete a third connection to the Lewis and Clark Regional Water System. This connection will allow the city to better utilize the available water supply and provide water to the downtown distribution zone where water capacity was reduced due to well shutdowns.  

 

Sioux Falls received a $17,746,000 Clean Water State Revolving Fund Program loan to construct a new Southeast Basin sanitary force main and gravity trunk lines, lift stations, equalization basin and gravity extensions. The project will be conducted in phases, and this is for Phase I. The loan terms are 3.50% for 20 years. 

 

South Lincoln Rural Water System received an additional $328,250 in ARPA grant funds to make system wide improvements including installing an elevated water tank, a new pump station, and a new water treatment plant. This project addresses capacity issues in portions of the distribution system and increasing demands within the existing service area. Previous funding for this project was approved in April of 2022 and June of 2024. The additional grant award brings the ARPA grant total for this project to $8,450,523. 

  

South Dakota Department of Agriculture and Natural Resources received an additional $1,000,000 in ARPA grant dollars for its statewide Riparian Buffer Initiative (RBI). Previous funding for this project was approved in April of 2022 and June of 2024. The additional grant award brings the ARPA grant total for this project to $7,000,000. 

 

Toronto received a $770,000 Drinking Water State Revolving loan with $425,000 in principal forgiveness to relocate sections of an existing water main. This is to accommodate the Department of Transportation installing new storm sewers and highway surfacing. The loan terms are 3.50% for 30 years. 

 

Additional Details:  

    

The State of South Dakota and the U.S. Environmental Protection Agency fund the Clean Water and Drinking Water State Revolving Fund Programs, which provide low-interest loans for wastewater, stormwater, water conservation, nonpoint source projects, and public drinking water system projects. The programs are funded through a combination of federal appropriations, loan repayments, and bonds. 

 

The board approved the funding at today’s meeting in Pierre. 

 

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