Economically Distressed Areas Program | Texas Water Development Board

Economically Distressed Areas Program (EDAP)

EDAP Program Information Sheet


General Program Information

1. What can the program do for you?

The Economically Distressed Areas Program (EDAP) provides financial assistance for projects serving economically distressed areas where water or sewer services do not exist or systems do not meet minimum state standards.

2. Who can borrow?

Eligible EDAP applicants include cities, counties, water districts, nonprofit water supply corporations, and all other political subdivisions. The city or county where the project is located must adopt Model Subdivision Rules for the regulation of subdivisions prior to application for financial assistance. Projects must also be located in an economically distressed area where the median household income is not greater than 75% of the median state household income. (See Special Requirements below)

3. What types of projects can I use the loan funding for?

EDAP assistance may be utilized for:

  • planning;
  • land acquisition;
  • design, and
  • construction of first-time service or improvements to water supply and wastewater collection and treatment works

4. How much funding is available?

Constitutional bonding authority is the primary mechanism for EDAP funding, and applications currently under review are anticipated to result in the allocation of the program’s remaining funding capacity. Additional EDAP bonding authority is considered by the state legislature during each legislative session.

5. When can I apply?

TWDB anticipates accepting EDAP financial assistance applications as permitted by available funding capacity.

6. What are the Conditions of Financial Assistance?

Conditions of Financial Assistance

Special Requirements

EDAP financial assistance requires compliance with applicable rules, policies, and statutes including:

  • Projects must be located in economically distressed areas with characteristics including:
    • Median household income less than 75% of the median state household income
    • Present facilities are inadequate to meet residents' minimal needs
    • Financial resources are inadequate to provide water supply or sewer services to satisfy minimal needs
    • The area was an established residential subdivision as of June 1, 2005
  • The city or county where the project is located must adopt Model Subdivision Rules for regulating subdivisions prior to applying for financial assistance. These rules must be consistent with the model rules adopted by the TWDB
  • The applicant must apply for and maintain a designation by the Texas Commission on Environmental Quality as an authorized agent for regulating onsite waste disposal facilities
  • The county must also prepare a map that shows where different types of on-site sewage disposal systems are appropriate
  • The applicant, or its designee, must be capable of maintaining and operating the completed system. The applicant is responsible for securing any necessary water permits or rights, wastewater discharge permits, and any other required licenses
  • If the applicant is required under Chapter 13 of the Water Code to have a Certificate of Convenience and Necessity (CCN) in order to provide service to the proposed project area then to be considered for EDAP funds, the applicant must have or be applying for the CCN
  • Water supply projects must be consistent with the current TWDB State Water Plan
  • Entities receiving assistance greater than $500,000 must adopt a water conservation and drought contingency plan
  • U.S. Iron and Steel Manufactured Goods requirements
  • Review of legislative requirements regarding water loss threshold limits

Loan Process

Application Process

Where Can I Get More Information?

In order to provide you with a single point of contact at the Texas Water Development Board (TWDB), our project implementation staff is organized into six regional project implementation teams. Each team is led by a manager that serves as the primary point of contact for both our existing and future customers. For assistance with the application or any questions related to your project, please contact your Regional Project Implementation Team.