Department of Natural Resources awards record $289 million loan to Missouri American Water Company

St. Louis drinking water provider will make extensive improvements

JEFFERSON CITY, MO, JULY 9, 2026 – The Missouri Department of Natural Resources has awarded $289 million in financial assistance to the Missouri American Water Company for upgrades to the company’s St. Louis Central Water Treatment Plant. This is the largest drinking water loan in the department’s history. The loan will cover the project’s entire cost. American Water expects the project to be completed by December 2029. 

The project will replace and upgrade several components at the company’s St. Louis Central Water Treatment Plant. The improvements are necessary to enable Missouri American Water Company to maintain and operate a water system that meets the drinking water quality standards and to provide reliable water service well into the future. 

Project funding consists of a $289 million Drinking Water State Revolving Fund loan. The department estimates this funding will save Missouri American’s ratepayers approximately $140 million in interest over the loan’s 20-year term. 

“We are gratified to be able to provide this record loan as part of the financial services we offer for upgrading water and wastewater systems across Missouri,” said Kurt Schaefer, director of the Department of Natural Resources. “We will continue to fund upgrades to water infrastructure across Missouri to provide Missourians with safe and abundant drinking water while preserving our water resources and keeping customers’ bills affordable.” 

The department’s Drinking Water State Revolving Fund finances improvements to water treatment plants, distribution systems and water storage and supply facilities. The fund also finances system interconnection and consolidation projects. Communities that borrow from the fund benefit from the below-market interest rate and from assistance a project manager provides throughout the project.

The department is committed to assisting Missouri communities with water and wastewater infrastructure improvement projects. Through its Financial Assistance Center, the department provides funding opportunities for qualified communities with water quality, wastewater and drinking water infrastructure needs. This project will be funded wholly or in part with monies received from the U.S. Environmental Protection Agency.

For more information on wastewater and drinking water funding opportunities, visit State Revolving fund (SRF)

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