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The WDA provides long-term, short-term and private-activity financing for the acquisition, construction and improvement of wastewater and water systems. Local Governmental Agencies (LGAs) that are eligible for loans include municipalities, public service districts and other political subdivisions authorized to acquire, construct or operate wastewater and water facilities.

Loans are repaid from the revenues (user fees) of the wastewater and water systems being financed. The LGAs may choose a loan term not to exceed 40 years.