The Hamlet of Rensselaerville is located in the northern Catskill Mountains of Albany County, New York, about 2 hours south of Albany. This small, historic community has a population of around 1,800, with the water district serving only around 200 of those. The Water Committee is made up of all volunteers and is among the smallest public water systems in New York State. The hamlet’s highlights are its historical architecture, the beautiful Lake Myosotis, and the Edmund Niles Huyck Preserve biological research station.
Lake Myosotis is the Rensselaerville Water District’s drinking water source and was facing potential regulatory action from New York State for surface water quality concerns. The volunteer Water Committee took action to address the technical and financial aspects of these challenges and reached out to the Syracuse University Environmental Finance Center (SU-EFC) for assistance.
Community Engagement and Strategic Planning
Community was the driving force behind Rensselaerville’s success, with the leadership of dedicated volunteers bringing energy and ideas to finding long-term solutions. The Committee saw early on that community buy-in would be a critical component in such a major infrastructure project and launched an outreach effort to educate residents on their drinking water source and the importance of protecting it. Having the public behind them, the Committee presented a proposal to the town to fund a Preliminary Engineering Report (PER) to explore alternative drinking water sources. The town agreed to allocate public funds through municipal bonding, with the understanding that the water district would eventually reimburse the cost.
Income Survey and Funding Eligibility
The New York State Drinking Water State Revolving Fund (DWSRF) serves as an important resource for communities below certain income thresholds. Census data for the broader town of Rensselaerville, which includes higher-income second-home owners, likely overstated the hamlet’s actual income level. An independent party was hired by the committee to conduct a median household income survey focused only on residents within the water district. The survey found a median household income of $55,000, which qualified the district for an increased percentage of project costs eligible for grant support under the DWSRF.
Securing State Revolving Fund Financing
The Water Committee submitted a DWSRF application in June 2024 using resources and guidance from SU-EFC for a comprehensive drinking water project. The proposed project would replace the current surface water system with a new groundwater well source, treatment plant, storage tank, and pump station. The Committee secured a favorable DWSRF financing package in September 2024, which included $1,786,250 in grants and $765,536 in interest-free financing, which is a transformative investment for a community of this size.
Looking Ahead
SU-EFC continues to support the project as it moves into implementation, beginning with the solicitation of a design engineer and ongoing community engagement. Rensselaerville’s story demonstrates that even the smallest water systems, with no paid staff and limited resources, can unlock major investments by rallying local champions, using creative strategies to improve funding eligibility, and building strong partnerships with technical assistance providers.
For more information, see the case study published by Syracuse University via the Environmental Finance Center Network: efcnetwork.org/3-ways-for-small-water-systems-to-secure-big-water-investments
Facing a similar challenge in your community? SU-EFC and our bench of partners provide no-cost technical assistance to help communities across EPA Region 2 plan projects, access funding, and move water infrastructure priorities forward.
Learn more and request assistance today: efc.syr.edu/assistance
