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Under the Clean Water State Revolving Fund (CWSRF) program, the department provides Regionalization Incentive Grants to municipalities for developing facility plans or sewer extension construction projects to connect small, struggling facilities outside its political boundary who currently discharge effluent to Missouri waterways. Small facilities often lack the financial and technical resources to upgrade their wastewater treatment facilities to meet more stringent limits and operate their facilities appropriately. These facilities typically serve such a small number of connections that the cost to comply with permit conditions is a significant financial challenge for the users. The main benefit of regionalization is that it pools individual resources of two or more wastewater systems to obtain services or facilities that one or both systems may not have been able to obtain by themselves.  

The main focus of the grant is to incentivize projects that would not be completed without this funding and reduce the number of small, struggling facilities currently under or likely to come under enforcement action with the Missouri Department of Natural Resources. By receiving and treating wastewater from the smaller facility, we reduce the number of point sources releasing pollutants to Missouri's waterways, increase operating efficiency and stimulate opportunities for economic development.

Funding is provided by the CWSRF fund, capitalization grant additional subsidization allocation. Funding is offered through a competitive, annual funding cycle. The department typically accepts applications through March 1.

Information and Assistance

The department encourages potential applicants to contact the department's Financial Assistance Center for assistance. The center can be reached at 573-751-1192 or by email at

Who Can Apply

Eligible applicants include municipalities of any size that have the capacity to accept and treat wastewater from one or more proposed connection(s) of other discharging facilities outside their service area. The applicant will be the recipient of all grant funds.

The following are ineligible to apply:

  • Facilities to be eliminated by the proposed connection
  • Satellite communities, since the municipality does not have the ability to treat the accepted flow, nor does the municipality have the authority to document available capacity to treat the additional flow

Eligible Projects and Costs

Eligible projects include those to connect or evaluate the feasibility of connecting another municipality or private non-profit wastewater treatment facility. The maximum distance that will be considered for proposed projects is 5 miles from the applicant’s collection system to the facility to be connected. Applications for connections greater than 5 miles may be evaluated on a case-by-case basis at the department’s discretion.

The department will compare the cost for constructing the proposed connection with the estimated cost to repair, replace or upgrade the wastewater treatment facility that is to be eliminated. Any connection project with a total estimated cost that is 110% or greater than the cost to upgrade the facility will be deemed ineligible. 

Projects designed for potential development are not eligible.

Grant funds provide reimbursement of eligible expenses for services provided during the project’s budget period. Examples of eligible costs include:

  • Planning, designing and constructing the sewer connection
  • Legal costs associated with negotiation and execution of a service agreement
  • Land acquisition or easements
  • Decommissioning is eligible when the facility to be decommissioned is a publicly-owned facility

Award Amounts and Match

This grant will fund 100% of all eligible costs. The number of applicant(s) selected each application cycle will vary based on the available funds. 

Application Process

The department accepts CWSRF Regionalization Incentive Grant applications throughout the year; however, only the applications received or postmarked by March 1 are considered during the current year's grant cycle. Applications received or postmarked after March 1 are not considered until the following year, assuming funds are available. Applications received or postmarked after March 1 are not considered until the following year, assuming funds are available. To apply for this grant, applicants may submit their completed application by email (preferred) to or mail to the department's Financial Assistance Center.

The department scores and prioritizes project applications for funding based on specific criteria. Prioritization is given to projects that address the most serious problems. Factors considered include the characteristics of the facility or facilities being eliminated and whether the facility or facilities are under enforcement or have a Schedule of Compliance in their permit to upgrade for more stringent limits. A complete listing of prioritization factors and factor weighting is available on the department's State Revolving Fund Plans and Reports webpage, in Appendix 9 of the most current CWSRF Intended Use Plan.

Engineering Procurement

Applicants must properly procure their engineering consultant. The information below is provided by the American Council of Engineering Companies of Missouri (ACEC Missouri) and explains the Qualifications-Based Selection (QBS) of  professional services.