New York is sending major water infrastructure funding to Cayuga County and the Town of Varick as part of a statewide push to modernize aging sewer systems and protect Cayuga Lake.

The state awarded more than $21 million combined to the two Finger Lakes projects through its latest round of Water Infrastructure Improvement and Intermunicipal Water Infrastructure grants. Officials say the work will reduce pollution, replace failing septic systems, and ease long-term costs for local residents.

Finger Lakes Partners (Billboard)Finger Lakes Partners (Billboard)

Cayuga County will receive $16.5 million to build the Cayuga Lake Sewer District No. 3. The project will extend public sewer service to unsewered areas in the towns of Ledyard and Genoa and includes upgrades at the Village of Aurora Wastewater Treatment Plant. State officials say the project will eliminate failing on-site septic systems and improve water quality along the eastern shore of Cayuga Lake.

In Seneca County, the Town of Varick secured $5.3 million to construct Sewer District No. 4 along Route 89. Homes in the area currently rely on individual septic systems. The new sewer district is designed to reduce nutrient runoff that contributes to harmful algae blooms in Cayuga Lake.

Both projects qualified for enhanced state aid aimed at small, rural, and disadvantaged communities. New York increased grant coverage for sewer projects in these areas to as much as 50 percent of eligible project costs to reduce the burden on local ratepayers.

State officials say the investments reflect a broader effort to protect drinking water, modernize outdated infrastructure, and prevent pollution before it reaches lakes and waterways. The grants are part of more than $453 million awarded statewide to 83 water and sewer projects, supporting over $1.3 billion in total construction work.

“New York families should not be burdened by rising water bills and outdated systems,” Governor Kathy Hochul said, adding that the funding helps communities move forward without passing unsustainable costs on to residents.

The state estimates the latest round of grants will save local ratepayers about $1.1 billion over time and support roughly 20,000 jobs. For communities around Cayuga Lake, officials say the projects represent a significant step toward cleaner water and long-term environmental protection.

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