Water Project Grants and Loans Program

The Water Project Grants and Loans program is administered by the Oregon Water Resources Department (OWRD), a state agency responsible for managing and regulating water resources across Oregon. Since its establishment in 2016, the program has distributed substantial funding to support water-related infrastructure and resource management projects, with over $151 million awarded to date. The program is designed to support implementation-ready projects that address both instream and out-of-stream water supply needs while delivering measurable public benefits. These benefits must span three required categories: economic, environmental, and social or cultural outcomes, which are central to the program’s mission and evaluation criteria. The primary purpose of this funding opportunity is to advance water resource development projects that are ready for final design and construction. Eligible project types include water conservation, water reuse, above-ground and below-ground storage, streamflow restoration or protection, and water infrastructure such as distribution and conveyance systems. Importantly, funding is restricted to implementation activities and final design, and cannot be used for planning or preliminary design work. Projects must demonstrate clear and measurable benefits across all three required public benefit categories to be considered eligible. The program requires a cost-share match from applicants. Most applicants must provide a minimum 25 percent match of the requested grant amount, which may include cash or in-kind contributions. Incorporated cities are subject to a tiered match requirement based on population size, with smaller cities eligible for reduced match percentages. Matching funds must be documented and secured prior to fund disbursement, and failure to meet match requirements results in application ineligibility. Eligible applicants include a broad range of entities such as local governments, tribal governments, nonprofit organizations, and individuals or private entities. Applicants must also meet additional eligibility conditions, including submission of property access documentation for all impacted lands and compliance with Water Management and Conservation Plan requirements if applicable. Projects must be located within Oregon and demonstrate readiness for implementation, including having necessary permits, water rights, and feasibility evidence either secured or in progress. Applications must be submitted through OWRD’s online grant platform. While not mandatory, applicants are strongly encouraged to participate in a pre-application conference, which requires advance preparation and must be requested at least two weeks prior to the desired meeting date. The application process requires detailed project descriptions, budget information, evidence of feasibility, documentation of public benefits, and supporting attachments such as site maps, property agreements, and match funding documentation. Applications are evaluated by a technical review team based on completeness, feasibility, and the strength of demonstrated public benefits across required categories. For the 2026 Funding Cycle 2, applications are due by July 15, 2026, at 5:00 p.m. The program anticipates approximately $6 million in total funding, including $2 million available for immediate awards and an additional $4 million contingent on a future bond sale. Award decisions are expected by December 2026, and funded projects must generally be completed within three years of the grant agreement start date. The program is recurring, with multiple funding cycles per year, although Cycle 1 of 2026 did not proceed due to lack of complete applications. For additional information or assistance, applicants may contact the program’s Grants Analyst, Louisa Mariki, via email at OWRD.grants@water.oregon.gov or by phone at 503-979-9160. The program also provides extensive application guidance materials, including detailed instructions, scoring criteria, and required templates, to support applicants throughout the submission process.

Ensure the project clearly demonstrates measurable benefits across all three required categories; incomplete applications or missing documentation will not be considered; prioritize implementation readiness and feasibility