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A municipality like Rapid City, with 70,000 people, typically has the tax base and revenues to develop its own safe, efficient water systems.

But for smaller towns and rural areas, like Box Elder, Sturgis or Hot Springs, providing fresh water to residents can be a major financial challenge.

To help out, the U.S. Department of Agriculture will soon award nearly $8 million in grants and loans to West River communities for water and other community projects. The money is coming as part of a continuing federal initiative targeted at meeting rural needs.

In Box Elder, officials will get the single largest chunk of federal money, with a $3.4 million loan for new water systems in its Northern Lights subdivision. The money will help pay to add a new well, water tank and distribution lines the city will connect to its current system.

"It’s always a challenge. In a poor community, the users cannot pay for as much," said Elsie Meeks, head of the USDA's Rural Development office in South Dakota.

"(Rapid City has) the population there and they can plan out accordingly. They don’t need our help. But these rural communities really do," she said.