USDA Rural Development invests over $16.6M in rural water, wastewater infrastructure improvements across rural KY

Greg Thomas
Release Date
Jun 04, 2020

Department of Agriculture Rural Development Kentucky State Director Hilda Legg today announced the department is investing over $16.6 million in seven water infrastructure improvement projects across Kentucky.

USDA is funding the projects through the Water and Waste Disposal Loan and Grant program.

“All too often, we take clean water and wastewater disposal for granted,” said Legg. “As rural water districts across the commonwealth age, these projects are crucial to rural communities. Water districts that keep their infrastructure in good health and practice sound management are well poised to serve their respective communities for decades to come. Together, we can help those communities thrive, because when rural Kentucky thrives, America thrives.”

City of Auburn - This Rural Development investment ($6.145 million loan/$2.6 million grant) will be used to replace and expand the existing wastewater treatment plant to accommodate increased discharge from a new industrial facility. The expanded treatment plant will continue to provide a safe and reliable wastewater treatment services for existing customers in rural Logan County.

Levee Road Water Association - This Rural Development investment ($1.05 million loan/$250,000 grant) will be used to upgrade transmission mains, provide flushing hydrants and a new chlorine booster station, and perform repairs to an existing water storage tank to improve overall water quality and reduce water loss from frequent breaks. These improvements will benefit existing customers in rural Montgomery County.

City of Caneyville - This Rural Development investment ($818,000 loan/$300,000 grant) will be used to replace approximately five miles of aging and obsolete waterlines with new PVC waterline, along with valves, fire hydrants, and reconnect service to provide a safe and dependable source of water to customers in Grayson County.

City of Lancaster - This Rural Development investment ($2.918 million loan/$1.274 million grant) will be used to rehabilitate the wastewater treatment plant and sewer collection system. This includes new clarifiers and disinfection equipment at the treatment plant, as well as replacing the sludge press, and the utility will repair or replace pipes, manholes and a lift station, which are sources of inflow and infiltration in the system. This project will improve service in Garrard County.

Laurel County Water District No. 2 - This Rural Development investment ($350,000 loan) is the result of a cost overrun due to low cost estimates based on the current market and higher than anticipated costs at bidding. The project involves the construction of one new 500,000-gallon water storage tank and the replacement of approximately two miles of water line in order to meet the current and future demands of customers in rural Laurel County, one of Kentucky’s persistent poverty counties.

Montgomery Co. Water District #1 - This Rural Development investment ($225,000 loan/$75,000 grant) will be used to purchase equipment for the water district, including 735 water meters, eight fire hydrants, and a truck and utility trailer in order to provide a more dependable supply of potable water for a rural population in Montgomery County.

Southeastern Water Association, Inc. - This Rural Development investment ($500,000 loan/$110,000 grant) will be used to complete the replacement of aging, undersized waterlines and three booster pump stations. Another pump station will be upgraded in Pulaski County.

The Water and Waste Disposal Loan and Grant program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit