EPA Awards $109 Million Loan for Oahu Water Plant
The Honolulu Board of Water Supply will use the funding to construct a new seawater desalination facility in West Oahu.
Updated on Oct. 16, 2026 in Utilities
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The U.S. Environmental Protection Agency has awarded a $109 million loan to the Honolulu Board of Water Supply. The agency will use the funds to build a seawater desalination plant in West Oahu to bolster local water reliability.
Why it matters
The facility is intended to improve water supply reliability by reducing the island's dependence on groundwater aquifers. This project represents a significant investment in long-term infrastructure to ensure consistent access to drinking water.
The federal loan provides $109 million in support, with the planned facility designed to produce 1.7 million gallons of drinking water daily. The loan is structured as a subordinate lien, allowing for deferred principal payments during construction.
The players
U.S. Environmental Protection Agency
This federal agency is responsible for protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.
Honolulu Board of Water Supply
This semi-autonomous agency manages the municipal water system for the city and county of Honolulu.
The details
The upcoming desalination plant will utilize a reverse osmosis process, which relies on high pressure to separate brine from seawater through specialized membranes. The project scope includes the construction of necessary byproduct disposal facilities, a recycled water pipeline, and transmission lines.
Timeline
October 16, 2026: The EPA officially awarded the $109 million loan to the Honolulu Board of Water Supply.
Market Landscape
This project follows the financing protocols established under the Water Infrastructure Finance and Innovation Act to modernize critical utility infrastructure. It positions the Honolulu Board of Water Supply to address regional resource limitations through advanced engineering rather than conventional expansion.
The desalination plant aims to provide a more reliable and consistent water supply for residents by diversifying the island's water sources. This project helps secure the long-term utility infrastructure needed to support the local population's drinking water needs.
The takeaway
Reliable water access remains a top priority for island communities facing pressure on groundwater resources. Developing advanced desalination capacity offers a sustainable path to buffer against future supply shortages.
Further reading
For more information on local service developments, visit the Utilities section.
Source note: This article includes information reported by Honolulu Star Advertiser.
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Do you support investing in seawater desalination plants to improve local water supply reliability?
