South Dakota Approves $54.8 Million for Water Projects

By Scout Nelson

The South Dakota Department of Agriculture and Natural Resources (DANR) announced that the Board of Water and Natural Resources has approved $54,856,749 in loans and grants to support water, wastewater, and solid waste improvement projects across South Dakota. The funding helps communities upgrade important public infrastructure while improving environmental protection and public services.

The total financial package includes $52,400,000 in low-interest loans, $2,000,000 in principal forgiveness, and $456,749 in grants. The funding is provided through DANR’s Clean Water State Revolving Fund Program, Solid Waste Management Program, and American Rescue Plan Act (ARPA) funds.

The town of Hecla received a $2,500,000 Clean Water State Revolving Fund loan with $2,000,000 in principal forgiveness. The project will improve the sanitary sewer collection system by replacing or relining 1,250 feet of sewer line and upgrading an existing lift station. The loan carries a 4.00 percent interest rate with a 30-year repayment period.

Shared Resources, a partnership between Minnehaha Community Water Corporation and the Big Sioux Community Water System, received an additional $206,749 in ARPA grant funding. The project supports a new water treatment plant, well field, distribution pipeline, and two storage tanks. Previous funding for the project was approved in January 2026, bringing the total ARPA grant to $51,148,897.

The city of Sioux Falls received a $51,900,000 Clean Water State Revolving Fund loan to replace and modernize aging wastewater treatment infrastructure at its Water Reclamation Facility. The improvements include new clarifiers, sludge pumping equipment, and splitter box systems to increase capacity and improve reliability. The loan carries a 3.75 percent interest rate with a 20-year repayment period.

The South Dakota Department of Agriculture and Natural Resources also received a $250,000 Solid Waste Management Program grant. The funding will support the cleanup and safe disposal of PFAS fire suppression products, waste tires, hazardous chemicals, and other solid waste.

Photo Credit: gettyimages-zms