Drinking Water State Revolving Fund


  • The Drinking Water State Revolving Fund was created with the 1996 amendments to the Safe Drinking Water Act.
  • Because the DWSRF is federally-seeded, the loans are subject to additional federal regulations regarding environmental review, outreach for disadvantaged business enterprises, payroll (Davis Bacon and related Acts), etc.
  • Congress provides funds for states to establish revolving loan programs for funding of drinking water projects.
  • States provide 20% matching funds.

Types of Funding Available

  • Low-interest loans (1/2 of market interest rates)
  • Limited amount of principal forgiveness loans

Eligible Applicants

  • Local Government Units (counties, cities, towns, sanitary districts, etc.)
  • Non-profit Water Corporations
  • Investor-Owned Drinking Water Corporations

Eligible Projects

  • Source, treatment, storage, or transmission & distribution systems

Key Program Requirements

  • Loan maximum is $20 million.
  • Construction must start within 24 months of Letter of Intent to Fund.
  • Closing fee of 2% (which cannot be financed).
  • Local Government Commission (LGC) must approve all loans.


  • The DWSRF Program has two funding cycles per year, typically in March and September.
  • Refer to Funding Program Application Information for detailed information on application deadlines and requirements. (Fall 2021 application deadline is Sept. 30, 2021.)
  • Contact Vincent Tomaino, PE at (919) 707-9058 or via email at vincent.tomaino@ncdenr.gov with application questions.

Application Training

  • The deadline for Fall 2021 project applications is September 30, 2021. 
  • Fall 2021 Funding Application Training was conducted July 27-Aug. 5 at six locations statewide: Hendersonville, Valdese, Winston-Salem, Research Triangle Park, Winterville, Pembroke.

Additional Information

Regulatory Information