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Phelps, Penn Yan, Dresden land major water upgrades

Three Finger Lakes communities are set for major water and wastewater improvements after New York approved new funding aimed at keeping infrastructure costs affordable for local residents.

Projects in Phelps, Penn Yan, and Dresden are among those included in a statewide $269 million package of grants and low-cost financing approved this week to support critical water and sewer upgrades.

DiSanto Propane (Billboard)

In Phelps, the village secured $12.7 million in state grant funding and interest-free financing to design and construct upgrades at its wastewater treatment plant. Officials said the project will modernize an aging facility and support future growth while improving environmental performance.

Penn Yan will receive $6.2 million in interest-free financing to plan, design, and build improvements at the Cherry Street Pump Station, along with a new force main connecting the station to the village’s wastewater treatment plant. The work targets reliability and capacity issues in a key part of the system.

Dresden also landed a significant investment. The village will receive $6.6 million in state grant funding and low-cost financing to replace roughly 20,000 linear feet of aged and undersized asbestos-cement water pipe. The grant portion of the funding comes from the state’s Environmental Bond Act.

State officials said the funding structure is designed to limit the impact on local ratepayers by combining grants with low- or no-interest loans through the Clean Water and Drinking Water State Revolving Funds.

Village of Phelps Mayor Jim Cheney said the funding is critical for small communities.

“This assistance will allow us to build a state-of-the-art wastewater treatment facility that will be more efficient, environmentally friendly and capable of handling projected growth,” Cheney said.

The Finger Lakes projects are part of a broader statewide effort to repair aging infrastructure, improve water quality, and reduce long-term costs for municipalities. The Environmental Facilities Corporation approved the funding as part of its regular board action, allowing communities to move forward with project agreements and construction planning.

State leaders said similar investments across New York focus on replacing outdated pipes, improving treatment systems, and protecting public health without forcing steep increases in local water and sewer rates.