Daily Reporter Staff

U.S. Sen. Chuck Grassley on Friday announced a $4.2 million loan to Spencer-based Iowa Lakes Regional Water.

It was was part of a $22.5 million grant and loan package for Iowa from the United States Department of Agriculture through the Water and Environmental program.

"These funds will help rural Iowa have the safe and reliable water and sewer services that are needed," Grassley said. "It's nice to see this money getting out to communities so quickly after the farm bill was passed."

The Water and Environmental Program provides loans and grants for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less.

Water systems near Newton, Avoca, Creston and Ireton also received USDA funding, according to the Grassley announcement.

Iowa Lakes Regional Water serves residents in Clay County, Buena Vista County, Dickinson County, parts of Palo Alto County and parts of Emmet County

The service provider also received a $2.2 million loan in May. In an interview about the earlier loan, Iowa Lakes Regional Water CEO Randy Van Dyke said the water system has $67 million in funding applications under consideration.

The rural water district has applied for additional funds to expand service in its eastern-tier counties. Iowa Lakes Regional Water currently only serves a small group of customers on the western edge of Emmet and Palo Alto counties. Other applications target expansion in the Minnesota counties of Jackson and Martin.