Water Project Grants and Loans

Timeline and Review Process

Eligibility

• This program provides grants for instream and out-of-stream water projects that have economic, environmental and social/cultural benefits. Projects must provide benefits in each of these three categories to be eligible for funding. 

• 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: 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. 

• Grants require a 25% cost match.
  

• Any local government, Indian Tribe, nonprofit organization, or person may apply for funding. 

• 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.

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.

More Information

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

• Overview of active grants and completed projects
  
• Funding Cycle History