South Dakota approved several drinking water projects at its September Board of Water and Natural Resources meeting, led by a $16.5 million grant for a bulk-water connection between Clay Rural Water System and Elk Point and a $10 million loan for Milbank’s water treatment system.
The awards focus on three recurring needs in South Dakota’s water systems: regional connections, treatment upgrades and aging infrastructure.
South Dakota’s water infrastructure needs are far larger than the latest award round. Federal needs surveys estimate the state will need $3.3 billion over the next 20 years, including $2.2 billion for drinking water and $1.1 billion for wastewater, according to a February fact sheet from the Water Program Portal. The same fact sheet says federal State Revolving Fund investments since 2022 have addressed about 9.9 percent of that projected need.
The largest projects approved include:
- Clay Rural Water System/Elk Point: $16.5 million federal Emerging Contaminants grant for a bulk-water connection to Elk Point. The project includes about 23 miles of pipeline, a 500,000-gallon storage tank, a booster station and a master meter. State documents say Elk Point’s current water source exceeds recommended manganese levels, and its wells and treatment plants are beyond their useful life.
- Milbank: $10 million Drinking Water State Revolving Fund (DWSRF) loan for a 2 million-gallon-per-day water treatment plant. The city plans to add package filters and aeration to reduce iron and manganese, with future plans to address hardness.
- Randall Community Water District: $5 million DWSRF loan for a regional waterline upgrade to connect to Mitchell. The larger project includes 38 miles of high-density polyethylene (HDPE) pipe, booster stations, storage facilities and an upgrade to the Platte Water Treatment Plant.
- Aberdeen: $2.5 million DWSRF loan for a 1.5 million-gallon elevated water tower and 16-inch transmission lines in northeast Aberdeen.
- Webster: $908,000 DWSRF loan for a water meter replacement project. The city plans to replace 1,075 meters, upgrade software and install a tower-based remote-read system.
- Elk Point: $730,000 DWSRF loan for city-owned improvements needed to connect to Clay Rural Water System, including 1,400 feet of 12-inch water main.
South Dakota water projects are funded through several overlapping sources, including the DWSRF, Clean Water State Revolving Fund, federal Infrastructure Investment and Jobs Act programs, emerging-contaminant grants, EPA drinking water grants and state Water and Environment Fund programs.
Since 2022, South Dakota has received $327 million in State Revolving Fund (SRF) support, including $259 million for the DWSRF and $67 million for the Clean Water SRF, according to the Water Program Portal.
The state also uses its State Water Plan to organize project eligibility and priorities. The legislature created the plan in 1972 to guide water resource policy, set priorities and identify projects for assistance. Projects that need state funding help, state support for federal funding or federal authorization generally must be on the plan, though placement does not guarantee funding.
The 2026 State Water Facilities Plan included 353 projects, according to the Board of Water and Natural Resources’ annual report. The plan’s unfunded projects carried projected state funding needs of more than $542.1 million.
The board’s 2025 annual report said it awarded more than $216 million in grant and loan funds last year for municipal drinking water, wastewater, rural water, watershed restoration, solid waste and recycling projects.
Photo by nandrbennett from Pixabay
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