The Water Supply Development Revolving Fund (WSDRF) was created to provide low-cost financing, grants, and technical assistance for water supply development projects outside of Arizona’s major urban centers. This fund is specifically designed to meet the unique water supply needs of small, rural communities.  

 WIFA can provide up to $2 million in grant funding and up to $3 million in the form of a low-interest loan for a total of $5 million in financial assistance per application.

To help ensure the long-term sustainability of the Water Supply Development Fund, the WSDC  on December 16, 2024 approved Resolution 2025-041 – Water Supply Development Revolving Fund Sustainability. That Resolution outlined the Committee’s goal of maintaining a WSDRF portfolio with a balance of 60% loan financing and 40% grant awards. Accordingly, the Committee intends to utilize its current funding to approve a total of $60,000,000 in grant awards, after which time it will consider only requests for financial assistance in the form of loans.

Interest rate discounts and grant eligibility will be determined based on the criteria listed in ARS § 49-1274(B)(3), including:

• Water Demands: existing, near-term and long-term water demands compared to the volume and reliability of existing water supplies
• Project Benefits: impact on water supply, benefits to multiple jurisdictions, conservation efforts, BMPs being implemented, and long-term reliability of supply being developed
• Project Feasibility: engineering specs, the cost and effectiveness of the proposal, funding sources, and public comment
• Financial Need: median household income