Drinking Water Regionalization Planning and Assistance Grant

Minnesota Department of Health will be facilitating an appropriation for planning and assistance for regionalization of drinking water systems. The grant is available to counties, municipalities and townships that are establishing or expanding regional drinking water systems. Regionalization is defined in Minnesota Statute. 116A.

Purpose

This funding supports planning and assistance for regionalization of drinking water systems and authorizes communities that meet the eligibility criteria to utilize awards to support funding for planning. Funds may be awarded to conduct studies, analyses, assessments, complete design work, seek legal assistance, or hold community engagement events, but not the actual construction of any of the water system.

The grant provides a framework for counties outside the seven‑county metropolitan area and judicial districts not organized into cities to:

• Form a regional water district that serves multiple municipalities.
• Consolidate or expand existing water systems so that one provider manages water supply, treatment, and distribution for a larger area.
• Cooperate among local governments to share infrastructure, operations, and costs.

Grants may be awarded to cover planning of the following:

• To construct and maintain public water systems, or combined systems, including treatment plants, pumps, service connections, mains, valves, hydrants, wells, reservoirs, tanks, and other appurtenances.
• To acquire, construct, finance, operate, and maintain such systems under the same rights and duties as a statutory city, if authorized by court order for communities that meet the eligibility criteria.

Grant awards may not exceed 60 percent of the funds available in that fiscal year for any one regional drinking water system. Grant recipients must provide matching funds equaling at least 25 percent of the total grant amount.

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Important dates

• Application Deadline: December 7, 2026 by 4:30 pm. 
• Funds will be available March 1, 2027, and must be used by March 1, 2029.

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Eligible projects

Grant funds are available to counties, municipalities and townships that seek to establish or expand regional drinking water systems. Projects must occur outside of the seven-county metro area. 

Grant funds must be used for planning activities, including:

• Feasibility studies.
• Engineering analyses.
• Legal assessments.
• Financial assessments.
• Community engagement efforts.
• Preliminary and final design work and activities necessary for drinking water system establishment or expansion.

Ineligible expenses include but are not limited to:

• Solicitating donations.
• Taxes, except sales tax on goods and services.
• Lobbyists, political contributions.
• Bad debts, late payment fees, finance charges, or contingency funds.
• Implementation, construction or rehabilitation costs.
• Capital improvement projects.

Priorities

It is the policy of the State of Minnesota to ensure fairness, precision, equity, and consistency in competitive grant awards. This includes implementing diversity and inclusion in grant-making. This grant is created to fund planning and design projects to establish or expand drinking water regions. The grant will help to expand regionalization in Minnesota and expand safe drinking water to communities that have violations or outdated infrastructure. Funds will be awarded based on water quality and the age of the existing infrastructure.

Collaboration

Multi-organization collaboration is allowed; however, each city/county will need to submit separate applications to be awarded grant funds, and funds will only be released to one organization. All organizations collaborating on a project are required to meet the grant eligibility requirements. Grant awards are capped at 60% of the funds in fiscal year for a single regional drinking water system project. More than one entity per system may submit an application, but total award for each system will be capped at the system limit.

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Application process

Complete the documents below.

Submit completed documents to regionalgrant.mdh@state.mn.us December 7, 2026 by 4:30 pm for consideration.

Regionalization Planning and Assistance Grant Application (PDF)

Sample Grant Agreement (PDF)

Application Evaluation Criteria (PDF)

Invoice Template (PDF)

Due Diligence Form (PDF)

Applicant Conflict of Interest Disclosure Form (PDF)

Drinking Water Regionalization Planning and Assistance Grant, Request for Proposal (PDF)

For further information please contact regionalgrant.mdh@state.mn.us .

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