How Will Small Water Systems Finance SDWA Compliance?

Many public water systems are faced with having to invest in plant and equipment to monitor and treat their drinking water in order to comply with the Safe Drinking Water Act. For small systems, financing these expenditures will likely be difficult. This article reviews the options available for the small water system to obtain funds for capital expenditures and outlines the criteria that the utility is expected to meet before it can be considered for a loan. The author emphasizes that demonstration of financial stability is a primary requirement. The risk of lending money to small water systems is evaluated. Assistance that may be provided by public agencies is also addressed.