Updates
Water Project Grants and Loans - 2026 Funding Cycle 2
OWRD
invites entities to submit applications for Water Project Grants and
Loans (WPGL) projects. WPGL provide grants for implementation-ready
projects that address an instream and out-of-stream water supply need
and have economic, environmental and social/cultural benefits. Projects
must provide benefits in each of these three categories to be eligible
for funding.
- Application Deadline: Wednesday, July 15, 2026, by 5 p.m.
- Total Funding Available: Approximately $6 million, including $4 million pending a spring 2027 lottery revenue bond sale.
- Eligible Projects:
Water conservation, 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.
- Application: Applications are available online.
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
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 $2M available for immediate award for the second 2026 funding cycle pending a spring 2026 lottery revenue bond sale, 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.