An official website of the United States government.

This is not the current EPA website. To navigate to the current EPA website, please go to This website is historical material reflecting the EPA website as it existed on January 19, 2021. This website is no longer updated and links to external websites and some internal pages may not work. More information »

Building the Capacity of Drinking Water Systems


State Agencies Supporting Water System Partnerships

Indiana Utility Regulatory Commission

Indiana Department of Environmental Management

Indiana Finance Authority

State Policies and Programs Regarding Water System Partnerships


Indiana’s DWSRF program incentivizes projects that include the consolidation of two or more PWSs by providing priority points for various consolidation projects. For example, projects that incorporate consolidation or interconnection of a non-complying PWS (acute public health concerns) are awarded 50 points, those that support consolidation of a non-complying PWS (chronic public health concerns) are awarded 20 points, and those involving SDWA compliant PWSs are awarded 1 point. 


The Capacity Development Program provides water systems wishing to apply for DWSRF funding a self-assessment that asks whether systems have considered consolidation; emergency interconnections with neighboring systems; and operator sharing as tools to enhance TMF capacity.


New PWSs must provide the Indiana Utility Regulatory Commission (IURC) with a Water System Management Plan that includes a managerial capacity section which assesses “the potential accessibility to another public water supply system with adequate water supply, flow, and pressure to serve the proposed service area.” The assessment must include “a description of the efforts to notify other operating public water supply systems within a ten-mile radius that there is a proposal to develop a new public water supply system and the responses to that notification. Finally, the narrative must state whether an agreement could be obtained for consolidation with or interconnection to an operating public water supply system within the ten-mile radius. If other systems are willing to serve the proposed service area, the Plan must include a cost-benefit analysis prepared by or under the direction of a professional engineer who is registered in Indiana.” The cost-benefit analysis must compare the development of a new public water supply system against consolidation with an existing public water supply system, and interconnection with an existing public water supply system. After receiving the narrative and cost-benefit analysis, the IURC can give or deny consent for the PWS to provide service in a municipality with an existing PWS.

Helpful Links to State Resources