- A $251 million federal loan will help fund a major California water reuse project.
- The project will serve about 105,000 customers in Los Angeles and Ventura counties.
- Recycled water will be purified to create the region’s first local water supply.
- The project is designed to make the water system more reliable during droughts, wildfires and supply interruptions.
- Federal financing is expected to save the local water authority $13.6 million over the life of the loan.
Saturday, September 20, 2026 — A California water agency has secured a $251 million federal loan to help turn recycled water into a new local water supply for communities in Los Angeles and Ventura counties.
The U.S. Environmental Protection Agency
announced the loan on September 18, 2026. The money will help the Las Virgenes-Triunfo Public Financing Authority fund its Pure Water Project and make improvements to drinking water treatment facilities.
The project will build an advanced water purification facility that will treat recycled water from western Los Angeles County and eastern Ventura County.
According to the Environmental Protection Agency, the project will provide the Las Virgenes-Conejo region with its first local water supply.
Building a Drought-Resistant Water System.
The project is intended to reduce the region’s vulnerability to drought while improving its ability to respond to wildfires, emergencies and interruptions in outside water supplies.
“This is a transformational milestone for our region,” Las Virgenes-Triunfo Public Financing Authority Chair Andy Coradeschi said. “The Pure Water Project is not just about infrastructure but rather securing a sustainable and drought-resistant future for our 105,000 customers.”
The Environmental Protection Agency said the new water supply is also expected to be more affordable and reliable.
The project could also reduce the region’s demand for water imported from Northern California. According to the agency, reducing that demand could leave more water available for agriculture and other uses, including Central California farmers.
Federal Loan Could Save $13.6 Million.
The $251 million comes through the federal Water Infrastructure Finance and Innovation Act loan program.
Unlike a traditional loan that may require principal payments soon after construction, the federal program allows some borrowers to defer principal payments for several years after a project is substantially completed.
The Environmental Protection Agency estimates those financing terms will save the Las Virgenes-Triunfo Public Financing Authority $13.6 million over the life of the loan while reducing the effect of the project on customers’ water bills.
“In April, EPA launched the Water Reuse Action Plan 2.0 to expand strategic opportunities to reuse water in ways that strengthen American industry, energy and economic growth, and local drinking water supplies,” EPA Assistant Administrator for Water Jess Kramer said.
Kramer said the California project will strengthen local drinking water supplies during normal and extreme conditions while reducing demand for water from Northern California.
Billions Available for Other Water Projects.
The Water Infrastructure Finance and Innovation Act program was established in 2014 to provide long-term, low-cost financing for major water infrastructure projects.
The Environmental Protection Agency issued its first loan through the program in 2018. Since then, the agency has announced $24 billion in financing for drinking water, wastewater and stormwater projects. According to the agency, those investments have supported more than 175,000 jobs.
Additional federal financing remains available.
The Environmental Protection Agency said as much as $6.5 billion is currently available for water systems, with another $550 million available to state infrastructure financing authorities. The agency is accepting letters of interest from potential borrowers.
