North Country communities receive $65 million for water and sewer projects

Gov. Kathy Hochul announced nearly $500 million in state grants Tuesday, Oct. 20, 2026, for drinking water and sewer projects across New York, including $65 million for 10 projects in the North Country. The funding is intended to help communities modernize water infrastructure, address lead service lines and manage project costs.

The awards are the first installment of a $3.75 billion clean-water investment plan included in the 2027 Enacted State Budget. The 106 projects have combined costs of about $1.4 billion, state officials said. They are expected to save communities about $1 billion in debt service under current market conditions and create an estimated 22,400 jobs in construction and related fields, including engineering, manufacturing and local services.

North Country awards

The listed awards include $4.6 million for water system improvements in the Village of Adams; $704,757 for the Town of Clayton’s Route 12 sewer project; and $2.3 million to replace the Route 180 water line in the Village of Dexter.

The Village of Gouverneur received $918,000 for a lead service line inventory. The Town of Henderson received $22.2 million for a sewer district project, while the Town of Lyme received $5 million for one of its water districts.

The Village of Potsdam received $5 million for water treatment plant improvements. The Village of West Carthage received $9.8 million for joint water system improvements. The North Country total also includes $14 million for Elizabethtown to establish a municipal sewer and wastewater treatment system.

The awards come through New York’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grant programs. State officials said the broader package includes enhanced grants for projects involving emerging contaminants, small and rural communities, disadvantaged communities and lead service line replacement.

Local project context

Potsdam’s 2026 project cap for Phase 1 work is $18.927 million, making the $5 million grant part of the project’s total financing. The village’s engineering schedule targets Phase 1 construction for late 2028.

Elizabethtown’s Sewer District No. 1 has a maximum cost of $37.1 million under a town bond resolution. The $14 million award is grant funding toward that project, not its full cost.

Dexter had already been planning replacement of the Route 180 water line in a 2021 state environmental notice. Potsdam applied for a water infrastructure grant in 2025 and trustees reapproved related resolutions July 20, 2026.

What happens next

Project schedules will depend on each municipality’s planning, design and construction process. Potsdam’s Phase 1 work is targeted for late 2028.

The New York State Environmental Facilities Corporation provides information about the grant programs and award process through its official website. The state Department of Environmental Conservation’s 2026 grant notice describes the Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grant programs.