Funding Sources
State and Federal agencies, foundations and private organizations may be potential sources to provide funding to qualifying groups and local governments within rural areas.
The following list represents entities that have contributed funds in the past, and that may have programs to offer assistance to rural watershed groups and partnerships for specific studies and projects.
The 'Tribal Funding' category on this page includes funding opportunities specifically designated for Tribal Nations. However, please note that other funding resources listed on this website may also include Tribal Nations as eligible entities. We encourage all visitors to carefully review each funding opportunity to determine which resources are most applicable to their needs.
Time-Sensitive Funding
● The WaterSMART Drought Response Program NOFO invites eligible applicants
to submit proposals for projects designed to improve drought resilience by
developing effective water management strategies and drought contingency
plans.
● Funding under the Drought Response Program supports a range of initiatives
including infrastructure improvements for increased water storage and
distribution capabilities, water source diversification, decision-making tools for
water management, and comprehensive planning to prepare for and respond to
drought conditions.
● Eligible Applicants: States, Tribes, irrigation districts, and water districts; State,
regional, or local authorities, the members of which include one or more
organizations with water or power delivery authority; and Other organizations
with water or power delivery authority (Category A). Nonprofit conservation
organizations that are acting in partnership with, and with the agreement of an
entity described in Category A. Category A applicants must be located in the
Western United States.
● Applications due by July 28, 2026, 4:00 p.m. MDT
● The Arizona Water Protection Fund (AWPF) supports projects that develop or
implement on-the-ground measures that directly maintain, enhance and restore
Arizona’s river and riparian resources. The AWPF Commission will be accepting
applications for the Fiscal Year 2027 grant cycle and will award grants under
three categories: capital projects, research, and water conservation.
● Eligible Applicants: Any person, organization, local/state/tribal agency, or
political subdivision of Arizona may submit an application. Federal agencies are
not eligible to receive funding from the AWPF; however, funding can be awarded
to projects on federal lands.
● AWPF staff will be hosting one grant application workshop:
○ LOCATION DATE Online Webinar* Wednesday, June 17, 2026 at 1:30
p.m. – 2:30 p.m.
○ Link: https://adwr.info/4tK4Gv3 Webinar Number (Access Code): 2531
632 8014 Webinar Password: 9VGq7PMaNG5
○ Join by Phone: 1-415-655-0001 US Toll (Access Code is same as above)
● The deadline to submit applications is Friday, August 14, 2026, at 11:59 p.m
● The WSDRF was created to provide low-cost financing 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.
● Eligible entities include water providers and political subdivisions outside of the
Phoenix, Pinal or Tucson Active Management Areas (AMAs), including municipal
water delivery systems, Native American tribes, public water systems, natural
resources conservation districts, and county water augmentation authorities.
A.R.S. § 49-1201(20)
● Funding from this program may support:
- Acquiring water, water rights, or contracts for water augmentation
- Planning, designing, building, or developing water-related facilities, including any required environmental or other reviews, permits, or plans for the following: Water delivery or conveyance projects
- Water storage or recovery projects
- Water reclamation, remediation, and reuse projects
- Groundwater replenishment projects
- Stormwater recharge structures (active or passive) projects
- Conservation projects that reduce water use or increase efficient uses of water supplies
● Applications Deadlines:
- Submit Part I – Project Priority List Application by May 27, 2026
- Submit Part II – Project Finance Application by October 4, 2026
● Pre-Application Consultations are encouraged. Contact WIFA staff to discuss
project eligibility, or application requirements and process. Contact WIFA at (602)
364-1310 or [email protected]
● The goal of the WaterSMART Applied Science Grants (ASG) Notice of Funding
Opportunity (NOFO) is to invite eligible entities to apply for funding to improve
access to and use of hydrologic data, develop and improve water management
tools, and improve hydrologic modeling and forecasting capabilities.
● Eligible projects include the development of modeling and forecasting tools,
hydrologic data platforms, and new data sets.
● Eligible Applicants: States, Indian tribes, irrigation districts, water districts;
State, Regional, or local authorities whose members include one or more
organizations with water or power delivery authority; and other organizations with
water or power delivery authority (Category A). Universities, nonprofit research
institutions, nonprofit organizations, and Federally-funded research and
development centers that are acting in partnership with the agreement of an
entity described in Category A. All Category A applicants must be located in the
Western United States or United States Territories.
● Applications due by July 08, 2026
- First application due July 8, 2026, at 5:00pm MDT
- Second application : April 13, 2027, 5:00PM MDT
● The objective of the WaterSMART: Title XVI Water Reclamation and Reuse
Projects NOFO is to invite eligible applicants to leverage their funding and
resources by cost sharing with Reclamation on the planning, design, and/or
construction of water reclamation and reuse projects. Title XVI projects develop
and supplement urban and irrigation water supplies through water reuse, which
provides growing communities with new sources of clean water, increases water
management flexibility during times of shortage, and makes the water supply
more reliable.
● Projects will be prioritized that create a more reliable water supply in a cost-
effective manner, address environmental and water quality concerns, and
promote collaborative partnerships. Projects will address growing water demands
and resource challenges by providing new, drought-resistant, local water
supplies that stretch existing supplies and reduce water importation.
● Eligible Applicants: States, Tribes, municipalities, irrigation districts, and water
districts, or wastewater districts, or other organizations with water or power
delivery authority.
● The First application submission period due date is August 26, 2026, at
4:00 p.m. Mountain Daylight Time (MDT).The Second and final application
submission period due date is August 26, 2027, at 4:00 p.m. Mountain
Daylight Time (MDT).
● The objective of the WaterSMART: Desalination Construction Projects NOFO is
to invite eligible applicants to leverage their funding and resources by cost
sharing with Reclamation on the planning, design, and/or construction of facilities
to desalinate seawater or brackish surface water or groundwater.
● Projects eligible for funding under this NOFO include planning, design, and/or
construction of facilities to desalinate seawater or brackish surface water or
groundwater. In order to be eligible for funding under this NOFO, the project must
meet the following requirements:
○ The project must be constructed, operated, and maintained by an eligible
applicant; or the project must be sponsored by an eligible applicant.
○ The project must have a completed feasibility study submitted to
Reclamation for review by June 26, 2026, for applications submitted under
the first submission period and by January 15, 2027, for applications
submitted under the second submission period.
○ Applicants with desalination projects that have an estimated total project
cost greater than or equal to $500 million (i.e., the minimum total project
cost requirement for Large-Scale Water Recycling Projects) must meet
additional feasibility study requirements beyond those in WTR 11-01.
○ The project must be included in a state-approved plan. The plan and
documentation of state approval must be included with the proposal or
submitted to Reclamation prior to the application deadline for this NOFO.
● Eligible Applicants: States, departments of a State, subdivisions of a State, or
public agencies organized pursuant to a State law, such as: States, Tribes,
municipalities, irrigation districts, and water districts, or wastewater districts.
● The first application submission period due date is August 26, 2026, at 4:00
p.m. Mountain Daylight Time (MDT).The second and final application
submission period due date is August 26, 2027, at 4:00 p.m. Mountain
Daylight Time (MDT)
● The objective of the WaterSMART Enhancing Water Resources Projects funding
opportunity is to invite eligible entities to apply for funding to implement projects
that benefit water resource management for multiple uses, including water
conservation and efficiency projects, water infrastructure improvements, and river
and watershed restoration.
● Eligible Applicants: States, Tribes, irrigation districts, and water districts;State,
regional, or local authorities, the members of which include one or more
organizations with water or power delivery authority; andOther organizations with
water or power delivery authority (Category A). Nonprofit conservation
organizations that are acting in partnership with Category A Applicants (Category
B). Watershed groups as defined in the Cooperative Watershed Management
Act, Section 6001(6). (Category C).
● Applications Due (First Round) Wednesday, September 9th, 2026, 4:00pm
MDT and (Second Round) Wednesday, September 8th, 2027, 4:00pm MDT
Rolling Funding
- Water is Life projects help to expand water, sanitation and hygiene services at the community level in Arizona with a prioritization given to projects focused on the Navajo Nation.
- Projects that are creative, community-led, and long-lasting are preferred. Each project must measurably improve access to water, sanitation, and/or hygiene for the target recipients. The focus must be on human needs, livestock and agricultural water projects are not eligible. If applying on behalf of an organization, the organization must have an annual operating budget of less than $3 million.
- Applications will be accepted on a rolling basis. Decisions will be made in June and November. To find more, visit their website or contact Dig Deep at [email protected] and (424) 285-0773.
- 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.
- 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
- Eligible Entities: Water providers and political subdivisions located outside of the Phoenix, Tucson, or Pinal AMAs.
- Applications currently being accepted.
Grant funds may be used to connect service lines to a residence, pay utility hook-up fees, install plumbing and related fixtures, e.g., bathroom sink, bathtub or shower, commode, kitchen sink, water heater, outside spigot, or bathroom.
Applicants must meet the following requirements:
- Own and occupy a dwelling located in a colonia (Arizona, California, New Mexico and Texas) and have evidence of ownership.
- Have a total taxable income (based on the latest federal income tax form from all individuals residing in the household) that is below the most recent poverty. income guidelines established by the U.S. Department of Health and Human Services.
- Have no delinquencies on any federal debt.
Applications for this program are accepted year round. Please apply through your local Rural Development office.
- Being climate-smart means recognizing that we are living in drier and hotter times and producing food using less water. The Arizona Climate-Smart Practices Program is a pilot program designed by Arizona’s Conservation Districts, AACD, and diverse partner groups to encourage growers in Arizona to adopt climate-smart agriculture and forestry practices that will allow for abundant agriculture while using practices that conserve water, promote healthy soil, and mitigate climate change providing beneficial ecosystem services, including carbon sequestration. The Program also emphasizes cross-cultural knowledge sharing between Native American producers and other participants.
- Producers who participate in the program will receive grant funds to help implement climate-smart practices that reduce pesticide and fertilizer inputs, reduce tillage, use diverse cover crops, rest pastures, and use rotational grazing on farms and ranches, and climate-smart commodities will be marketed through partnership networks.
- Annual Incentive of $11,000, + Marketing assistance for desert-adapted crops.
More Information or Apply Here for the Climate-Smart Program
The primary objective of this program is to provide design and construction assistance to non-federal sponsor interests for carrying out water-related environmental infrastructure and resource protection and development projects in Arizona and rural Nevada.
- Projects may include wastewater treatment and related facilities, water supply, and related facilities, environmental restoration, and surface water resource protection and development.
- The program holds an open house to answer questions to potential applicants every second Tuesday of each month, at 1 PM Arizona time. The link to the open house can be found here.
NADBank provides direct financing to public and private entities for the implementation of environmental infrastructure projects located within the U.S.-Mexico border region. It also offers a variety of financial services to support border communities and other sponsors in developing sustainable projects with sound financial structures.
Financing may be provided in a number of ways, including:
- Direct loans: Term, bridge, A/B, etc.
- Revolving lines of credit
- Participation in municipal bond issues
Additionally, NADBank may act as the sole lender or co-finance projects with other public or private financiers, depending upon the characteristics and financing needs of the project. NADBank cannot finance more than 85 percent of the eligible costs of a project. Funding from other sources in the form of equity contributions, subordinated loans, grants or co-financing is required.
NADBank offers technical assistance to help border communities and other project sponsors develop environmental infrastructure projects for financing and implementation, as well as to strengthen their financial performance and reinforce the long-term sustainability of their projects.
- Project development assistance grants are available to project sponsors who are applying for infrastructure financing from NADBank.
- Technical assistance is only available to support the development of projects located within the geographic jurisdiction of NADBank.
The Border Environment Infrastructure Fund (BEIF), for project implementation, and the Project Development Assistance Program (PDAP), for project development, are grant programs funded by the U.S. Congress through the U.S. Environmental Protection Agency (EPA) and administered by NADBank.
This program offers grant financing exclusively for the implementation of high-priority municipal drinking water and wastewater infrastructure projects located within 100 kilometers of the U.S.-Mexico border.
Applications are received throughout the year and are evaluated periodically for placement within the ranked project application list. As additional BEIF funding becomes available, new projects will be selected and incorporated into the development pipeline.
NADBank offers grants to support the implementation of critical environmental infrastructure projects for economically distressed communities in the U.S.-Mexico border region. All projects must be located within 62 miles of the southern border in the state of Arizona.
Projects are available three project sectors are:
- Drinking Water: Projects that support access to sustainable and safe drinking water, including supply, treatment, transmission, storage, distribution, metering, conservation and point-of-use technologies.
- Wastewater: Projects that help eliminate exposure to unsanitary water conditions, including service connections/on-site systems, collection, conveyance, treatment and reuse.
- Storm water: Projects that support adequate storm water management, including piped systems, retention basins, culverts, canals, berms, erosion control, flow velocity control and green infrastructure.