Closeup image of a public drinking water tower from below looking up at the main storage tank.

Missouri's Drinking Water State Revolving Fund (DWSRF) Loan Program offers low-interest loans to communities for a wide range of drinking water infrastructure projects, including water treatment and distribution, water storage facilities, wells and interconnection/ consolidation.

Funding is provided by the DWSRF fund. Funding is offered through a competitive, annual funding cycle. The department makes DWSRF loan commitments only once per year, to eligible applicants who submit an application by 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 the following:

  • Counties, incorporated cities and towns, joint municipal utility commissions, regional water or sewer districts and political subdivisions that are not owned by the federal government
  • Nonprofit corporations providing a wholesale or regional water supply
  • Investor-owned water utility corporations

Eligible Projects and Costs

Eligible projects include infrastructure improvements that facilitate compliance with national primary drinking water regulations or otherwise significantly advance the public health protection objectives of the Safe Drinking Water Act. Projects may be new construction or the improvement or renovation of existing facilities.

Drinking water projects may include the following:

  • Treatment plants 
  • Transmission and distribution mains
  • Supply sources (i.e. wells, interconnections, and surface water intakes)
  • Storage facilities
  • Water security projects
  • Purchase of a reservoir water rights in order to meet drinking water health protection objectives of the Safe Drinking Water Act
  • Lead Service Line Replacement (LSL) or associated activities directly connected to the identification, planning, design and replacement of LSLs 

Certain water projects are ineligible for assistance including the following:

  • Construction or rehabilitation of dams 
  • Construction or rehabilitation of most water reservoirs
  • Projects needed primarily for fire protection
  • Projects needed primarily to serve future population growth

Eligible expenses and allowable construction costs also include engineering costs for planning and design, land if needed for the project and legal costs associated with the project. Eligible and ineligible expenses are further described in EPA's DWSRF Eligibility Handbook

Award Amount and Match

Loan amounts are issued on the basis of actual as-bid costs, with no set maximum. The DWSRF program offers fixed-rate loans with the following terms:

  • Subsidized target interest rate that is 30% of the current market rate published the week before loan closing, which occurs once all program requirements are satisfied, the project is bid and contract awarded
  • Standard loan term is 20 years or the life of the project
  • Extended term loans, up to 30 years, not to exceed the useful life of the project, may be available on a case-by-case basis with an additional 0.25% interest added to the target interest rate 
  • A 0.5% annual loan administration fee is also charged through the life of the loan

Each applicant must demonstrate it has secured bond authorization with a dedicated repayment source in order to provide the appropriate loan security. The bond is ordinarily a Revenue Bond or a General Obligation Bond, but a Special Obligation Bond may be accepted in certain circumstances.

Loan funds may be paired with additional subsidization (grants) to offset a project's total loan amount based on project affordability or to connect a disadvantaged community.

Application Process

The department accepts DWSRF Loan applications throughout the year; however, only the applications received or postmarked by March 1 are considered during the current year's loan cycle. Applications received or postmarked after March 1 are not considered until the following year, assuming funds are available. To apply for this loan, applicants may submit their completed application and documentation of an acceptable debt instrument by email (preferred) to or mail to the department's Financial Assistance Center. The application and other key forms and guidance are available under the Resources tab.

Applicants seeking joint funding from the Missouri Department of Natural Resources and the Missouri Department of Economic Development’s Community Development Block Grant should include that information with this application. 

The department ranks project applications based on readiness to proceed, using a priority point system. Eligible projects are then listed in the next fiscal year’s DWSRF Intended Use Plan, available on the department's State Revolving Fund Plans and Reports webpage. The complete list of criteria used and associated point value is available in the Intended Use Plan. The department may make loan only commitments with a quarterly amendment to the Intended Use Plan.