How does a small Texas water supply corporation qualify for TWDB funding for a system upgrade?

A small Texas water supply corporation qualifies for TWDB money by fitting a program that names it as eligible, then applying on time. Texas water supply corporation funding from TWDB is not one pool. Each program sets its own rules.

Which TWDB programs can a water supply corporation use?

Only programs that name water supply corporations are open to you. The Texas Water Supply Corporation Grant is written for them. The Water Supply and Infrastructure Grants are not.

The TWDB financial assistance page says TWDB offers a variety of cost-effective loan and grant programs that provide for the planning, acquisition, design, and construction of water related infrastructure. Each program has its own eligibility, so no corporation should assume a grant applies to it.

The Water Supply and Infrastructure Grants page states that water supply corporations (WSCs) would not be eligible for funding from that one-time appropriation. It gives a constitutional reason.

The same page adds that existing financial assistance programs are governed by statutes that clearly provide financial assistance to non-profit WSCs. So a closed door on one grant does not close TWDB to you.

Who is eligible for the Texas Water Supply Corporation Grant?

You must be a water supply corporation serving existing residential customers. Entities whose main business is commercial or industrial service are left out.

The TWDB grant page says the opportunity is open only to Water Supply Corporations that serve existing residential customers. TWDB describes it as one-time grant funding for eligible Water Supply Corporations.

Funding is provided as 100 percent grants for water infrastructure projects that support water supply, water conservation strategies, and water loss mitigation. An upgrade fits when it serves one of those three purposes. Confirm project types against the program's Implementation Plan.

The money comes from funding made available through the Rural Water Assistance Fund (RWAF) and the Water Loss Assistance Fund (WLAF).

What does the application involve?

You apply online, and the date is firm. The deadline to submit a TWSCG application through the Online Application (OLA) system is Wednesday, January 13, 2027, at 11:59 p.m. CST.

Applicants must use the TWSCG-specific application materials. TWDB's instruction is “Complete each item in the order listed.” The listed items are:

• The Average Median Household Income (AMHI) Worksheet
• The Online Application (OLA) system RWAF application
• The TWSCG Completion Form, marked “Update coming soon” on the TWDB page

TWDB says applicants may submit questions regarding application requirements, eligibility, and opportunity guidance using the TWSCG Questions Form. It answers them through the pre-recorded webinars and/or the two live Q&A Sessions. TWDB notes: “Dates and times are tentative and subject to change.”

Its project implementation staff is organized into regional teams. Ask which team covers your service area before you start.

How can a water supply corporation check readiness before applying?

Answer a short set of yes/no questions. Each one shows whether you can finish on time or need help first.

1. Are we a Water Supply Corporation?
2. Do we serve existing residential customers, and is that our primary service?
3. Does the upgrade support water supply, water conservation or water loss mitigation?
4. Have we completed the AMHI worksheet?
5. Can we submit through the Online Application system before the January 13, 2027 deadline?
6. Does an engineer or other qualified person know the upgrade's scope well enough to describe it?

You are ready only when every answer is yes. Any no is the item to fix first.

Bring these questions to your engineer or board:

• Which TWDB regional team covers our service area?
• Does our upgrade clearly fit water supply, conservation or water loss?
• Who will own the application and meet the deadline?

Scope is an engineering question. See our Texas water engineering work and how we work with utilities and municipalities.

This article is general education based on TWDB pages retrieved October 31, 2026. Program terms, dates and eligibility can change, so confirm them with TWDB and your engineer. It does not predict whether any application will be funded.

Frequently asked questions

Is the Texas Water Supply Corporation Grant a loan?

No. TWDB describes the funding as 100 percent grants, so there is no repayment under that program's terms.

Can a water supply corporation get Water Supply and Infrastructure Grants?

Not under the TWDB page. It states that water supply corporations (WSCs) would not be eligible for funding from that appropriation.

I manage a small water supply corporation in rural Texas and we mostly serve homes, but we also supply a few small businesses. Do we still count as eligible for the grant?

The test is your primary service. TWDB's wording is “excluding entities whose primary service is to commercial or industrial customers.” Residential service as your main business fits that test. Send your exact situation through the questions form to be sure.

I'm the board president of a Texas water supply corporation with leaking mains and I want to apply before the deadline. Where do I send questions about whether the project qualifies?

TWDB says applicants may submit questions regarding application requirements, eligibility, and opportunity guidance using the TWSCG Questions Form. Submit early. Water loss mitigation is a named purpose, but only TWDB can say whether your project fits.

Is there a person at TWDB I can call?

TWDB lists (512) 463-0991 for financial assistance, and regional teams led by a manager serve as the primary point of contact.

Related Resources

• Unlocking Funding Opportunities: The Texas Water Development Board's Clean Water State Revolving Fund (CWSRF) Loan Program
• Aging Infrastructure and Regulatory Changes in Small Water Systems
• Texas Water Infrastructure Crisis: $134 Billion Funding Gap
• How to Access $2 Billion in Senate Bill 7 Funding for Texas Water Reuse Projects

Planning a System Upgrade for Your Texas Water Supply Corporation?

A funding application is easier when the upgrade scope is defined by an engineer. MES helps small water systems turn a problem into a clear, documented project.

We specialize in:

• Water system engineering for small utilities
• Water line replacement and relocation design
• Wastewater engineering
• Permitting and entitlements support
• Construction administration

Modern Engineering Solutions, McKinney, Texas. Contact: (214) 833-6748 or mod-eng.com