The Board of Directors of the New York State Environmental Facilities Corp. has approved a $2 million grant, along with a $1.2 million interest-free loan for major improvements to the water district that serves the towns of New Berlin, Butternuts and Morris.

The South New Berlin water district will replace a contaminated well, replace a large 115-year-old storage tank, install a new filtration system, and upgrade aged and undersized water mains.

The $3.3 million project will also include the extension of service to consolidate two small water systems and provide clean water to six residences with poor quality private wells.

Construction on the project is expected to begin next spring and be completed by the end of 2013.

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