Western North Carolina gets $86M for water projects in five counties hit by Helene

RALEIGH, N.C. (WLOS) — North Carolina Governor Josh Stein has announced five western North Carolina counties will receive more than $86 million in funding for 14 drinking water and wastewater infrastructure projects, according to a news release from Stein’s office.

The $86 million awarded is part of a U.S. Environmental Protection Agency program for disaster-affected states.

According to the release, North Carolina is the first state impacted by Helene to be awarded grants from this program.

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“Too many people lost access to water when Hurricane Helene struck, and in some places, it took months to be able to guarantee potable water,” Stein said in the news release. “These grants will help towns across western North Carolina strengthen their water infrastructure so that it can better withstand future storms.”

The award requires that drinking water and wastewater funds be used to improve flood resilience in systems impacted by Helene, along with septic system funds that must be used to improve flood resilience to septic systems affected by Helene, says the release.

“These are the first awards from the $686 million from the Environmental Protection Agency for drinking water, wastewater, and septic system repairs and upgrades in the wake of Helene,” DEQ Secretary Reid Wilson said in a news release. “Importantly, all funded projects must ensure that the systems will be more resilient to future flooding events. Having clean and reliable water is critical for the health of our people. Everyone expects and deserves to turn on the tap and receive water that is safe to drink.”

According to the news release, the following are notable projects:

• The Town of Gamewell (Caldwell County) will receive $775,200 in Principal Forgiveness (PF) to replace/relocate gravity sewer lines and incorporate resiliency through various measures, including stream bank stabilization. High water from excessive rainfall during Helene caused erosion of the riverway and damaged the pipe and support piers.
• The Town of Waynesville (Haywood County) will receive $5 million in PF to convert a gravity sewer line to a force main with a new pump station and to relocate an existing junction box outside of the 500-year flood plain.
• The Town of Drexel (Burke County) will receive $5 million in PF to fortify lines in the floodplain and to convert a treatment unit into an equalization basin. The pump station was flooded during Helene, and installing an equalization basin would help reduce Sanitary Sewer Overflows and provide resiliency.
• The City of Morganton and the Town of Drexel individually submitted separate applications for the Morganton-Valdese-Drexel interconnection project. This project will create a new emergency interconnection between the towns of Morganton, Drexel, and Valdese to establish water system resiliency in the wake of an extreme weather event. Drexel will receive $5.1 million for its share of this project. Morganton will receive $10 million in funding for its share.
• Junaluska Sanitary District will receive $10 million to rebuild and provide resilience to withstand floods. The shifting of the Pigeon River due to Helene flooding adversely impacted its old system. The proposed project will replace outdated, undersized, and aged water mains that service more than 300 residential connections along the Pigeon River. These lines are dead-end lines and are not looped or connected to other water mains. New water mains, along with valves, new water supply wells outside of the 500-year flood plain, and installation of backup power will provide resiliency, specifically for Haywood Community Hospital and Haywood County Emergency Services.
• Woodfin Sanitary District will receive $5 million to install emergency standby power and replace inoperable control valves at the water treatment plant to ensure operators can properly operate and maintain the system during emergencies.
• The Town of Hot Springs will receive $5 million in PF to include flood resiliency improvements to three pump stations and to improve approximately 5,600 linear feet of gravity sewer. Generators and flood protection walls will be added, and wet wells and electrical equipment will be elevated.
• The Town of Hot Springs will receive an additional $5.2 million to install a new redundant transmission line beneath the French Broad River from the well system to the distribution system and to install a new redundant waterline under Spring Creek to feed the 200,000-gallon water storage tank; to construct a new 200,000-gallon water tank adjacent to an existing tank to provide redundant system storage; to replace approximately 6,000 linear feet of damaged water lines; to rehabilitate and improve the existing supervisory control and data acquisition system to ensure operability and access during flood events; to install radio read meters, which will allow the town to quickly identify water leaks and provide repairs for customers; and to install back-up standby power to increase resiliency.

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According to the release, the State Water Infrastructure Authority (SWIA) is accepting donations for the State Revolving Funds (SRF) from the 2025 American Relief Act to build resilience to water infrastructure for Helene-impacted communities. Applications will be open year-round until 2026 for towns in western North Carolina that have received Helene damage.

• The release says that applications received by the dates below will be reviewed and presented at a SWIA meeting:
• First round of applications received by August 1 were presented to SWIA and awarded on September 17.
• Applications received by November 3 will be presented to SWIA on December 10, 2025.
• Applications received by January 9, 2026, will be presented to SWIA on February 18, 2026.
• Applications received by March 2, 2026, will be presented to SWIA on April 15-16, 2026.

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According to the release, Drinking Water SRF Helene and Clean Water SRF Helene funding is available to local government units and nonprofit water corporations in the form of zero-interest loans and principal forgiveness.

The release says applicants must document impacts from Helene, and the proposed project must include resiliency with the purpose of reducing flood damage risk and vulnerability to rapid hydraulic change or natural disaster.

To learn more about the Division of Water Infrastructure’s funding programs, visit here.