Drinking Water State Revolving Fund

The DWSRF program helps public and private water systems across Arizona meet the objectives of the SDWA by providing a permanent, independent source of low-cost financing. Under the DWSRF, WIFA provides various types of assistance, including loans, technical assistance, and forgivable principal. Our loan terms vary and may include an interest rate discount and repayment periods of up to 30 years*. Much like the CWSRF, WIFA tailors all loan terms to the borrower's situation and needs.

*repayment period cannot exceed the useful life of infrastructure financed. For example, if a project has a maximum useful life of 15 years, the loan term cannot exceed 15 years.

Eligibility criteria

Who can apply and what can it fund
  • Eligible borrowers

    Eligible borrowers

    Publicly-owned community water systems can apply for Arizona's DWSRF program; these include:
    • Cities
    • Towns
    • Special Districts
    • Tribal Entities
    • Arizona Corporation Commission (ACC) regulated private community water systems
    • Non-profit non-community water systems that meet DWSRF requirements and are regulated by the ACC.

    A "community water system" serves 15 or more service connections used by year-round residents or that serves 25 or more year-round residents who use water for drinking, cooking, bathing, and cleaning. Community water systems may also serve all the businesses and other water users within their boundaries. Arizona Department of Environmental Quality (ADEQ) determines the classification of a public water system.

    Ineligible applicants for the DWSRF:
    • Federally owned systems
    • State owned systems*
    • County owned Systems*
    *these borrowers are typically ineligible, but in some cases, they may partner with an eligible borrower. Please contact us for more details.

  • Eligible projects and expenses

    Treatment - for example, installation or upgrade of facilities to improve the quality of drinking water to comply with standards.

    Transmission and distribution - for example, installation or replacement of transmission and distribution pipes to improve water pressure to safe levels or to prevent contamination caused by leaks or breaks in pipes. This category also includes meters.

    Source - for example, rehabilitation of wells and development of eligible sources to replace contaminated sources.

    Storage - for example, installation or upgrade of eligible storage facilities, including finished water reservoirs, to prevent microbiological contaminants from entering a public water system.

    Consolidation - projects needed to consolidate water supplies where, for example, a supply has become contaminated or a system is unable to maintain compliance for technical, financial or managerial reasons (may include water rights, if the water rights are owned by a system that is being purchased through consolidation).

    Creation of new systems - projects that, upon completion, will create a community water system to address existing public health problems.

    Land acquisition - only if it is integral to a project that is needed to meet or maintain compliance and further public health protection (i.e., needed to locate eligible treatment or distribution projects, or to protect source water).

    Refinancing debt obligations of publicly owned systems.

  • Unsure of your eligibility?

    We have staff available during normal business hours to answer these questions. If you would like to speak with someone, please contact us at (602) 364-1310 and we will be happy to help. Staff are available Monday - Friday, 8:00 AM - 5:00 PM.

Application and Scoring

The first step towards funding your project
  • Where do I apply?

    You can add your project to our Project Priority List (PPL) by using our online application tool. Once your application is submitted, you'll be assigned a project manager and fiscal services representative to help you through the rest of the process. 

    If you have any questions before or during the PPL process, please feel free to contact us at (602) 364-1310 and we'll be happy to help. 
  • What is the Project Priority List (PPL)?

    The Project Priority List is the first step in our application process. We use the initial details you provide in this process as an initial eligibility screening for your project. Additionally, we use other details you provide us to calculate some estimated financial benefits including forgivable principal, technical assistance, and rate subsidy. Adding yourself to our PPL also allows us to assign the project manager for your region and assign a fiscal services representative. The assigned individuals will provide 1:1 assistance to you throughout the process.

Additional Requirements

General and DWSRF specific requirements
  • American Iron and Steel (AIS)

    The American Iron and Steel (AIS) provision requires Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) assistance recipients to use iron and steel products produced in the United States. This requirement applies to projects for the construction, alteration, maintenance, or repair of a public water system or treatment works.

     The AIS provision is a permanent requirement for CWSRF treatment works projects. The America's Water Infrastructure Act of 2018 amended the Safe Drinking Water Act to extend the AIS provision for DWSRF projects through the Fiscal Year 2023.

    Some WIFA projects are deemed exempt from AIS requirements, contact our office for more details.

    US EPA American Iron and Steel Requirements

  • Davis-Bacon Related Acts

    CWSRF and DWSRF projects must comply with federal Davis-Bacon regulations. That means all construction workers on SRF projects must receive Davis-Bacon wages, and those wages must be verified. Borrowers will be responsible for Davis-Bacon compliance. Some borrowers may qualify for help through our Technical Assistance Program with the Councils of Governments (COG). The cost of hiring a contractor to assist with Davis-Bacon is reimbursable with SRF loan funds. The Department of Labor (DOL) is responsible for Davis-Bacon rules and regulations.


    EPA Davis-Bacon Act Guidance

Sign up for the latest news and updates