The Huttonsville Public Service District has broken ground on its new water treatment plant.
The PSD had to buy water from other sources and customers often relied on well water that wasn't necessarily that good.
It said the new water treatment plant will use a new water impoundment nearby to supply water to customers in southern Randolph County.
"Having potable water in this area will definitely increase the value of land, and make it possible for more houses to be built and live in the area," said Craig Burns, of USDA Rural Development.
The PSD has received more than $7 million in loans and grants from the USDA.
The plant should be finished February of 2014.