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Water Project Grants and Loans

Updates

Meeting Notice - 2026 Funding Cycle 2

OWRD invites the public to attend the Technical Review Team meeting October 5-6, 2026. OWRD received twelve Water Project Grants and Loans applications for the second 2026 funding cycle. A multi-agency Technical Review Team (TRT) will evaluate and score grant applications and make funding recommendations at the TRT meeting. Public comments will not be taken during the meeting, however, OWRD will open a public comment period on the TRT funding recommendations following the meeting.

OWRD will present the TRT funding recommendations, and any public comments received, to the Water Resources Commission for its funding decision on December 10-11, 2026.

  • Technical Review Team meeting
    • Time: Day 1, Monday, October 5, 2026, from 8:30 a.m.–4:30 p.m.
    • Location: Virtual via Zoom. If you wish to join, please register for Day 1 with this link.
    • Time Day 2, Tuesday, October 6, 2026 from 8:30 a.m.–2:30 p.m.
    • Location: Virtual via Zoom. If you wish to join, please register for Day 2 with this link.
  • View the meeting agenda.
  • View the Water Project Grants and Loans Funding Application Summaries
  • View the 2026 applications received by visiting the Funding Cycle History page.

2026 Funding Cycle 1

OWRD accepted applications on January 21, 2026 for the first 2026 funding cycle and did not proceed with the funding cycle as no complete applications were received.

Timeline and Review Process

timeline graphic

Eligibility

  • This competitive funding opportunity is intended for implementation-ready projects. Funds may be used for final design and implementation costs, but not for planning or preliminary design work. Eligible projects include: water conservation, water reuse, above-ground storage, below-ground storage, streamflow protection or restoration, water distribution, conveyance or delivery systems, and other water resource development projects that result in economic, environmental, and social/cultural public benefits. 
  • Any local government, Indian Tribe, nonprofit organization, or person may apply for funding. 
  • Property Access documentation must be submitted with the application for all properties impacted by project implementation.  
  • If an applicant or co-applicant is required to have a Water Management and Conservation Plan (WMCP), the plan must be submitted to the Water Resources Department at the time of application and receive approval prior to the funding decision date.

Match

Grants require a 25% cost-share match for all applicants except incorporated cities. Incorporated cities must provide a match based on their population size according to the most recent federal decennial census. See below for additional information.


Available Funding

OWRD anticipates having approximately $2.9M available for immediate award for the second 2026 funding cycle, and an additional $4M available for provisional award, pending a spring 2027 lottery revenue bond sale.

How to Apply

Applications for Water Project Grants and Loans will be accepted through our new online grant platform. OWRD encourages prospective applicants to participate in a pre-application conference prior to submitting an application for funding online. The purpose of a pre-application conference is to answer your questions about the funding process, identify any additional information that may be needed, discuss potential eligibility issues, and provide guidance on both the procedural and substantive requirements of the application, including how applications are scored.  You must complete the sections identified in the grant pre-application conference checklist before requesting a pre-application conference and email a request at least two weeks prior to your desired pre-application conference date. If you have any questions, please contact the Grants Analyst.

More Information

The Department has been funding Water Project Grants and Loans since 2016. It has awarded $151 million in grants.