What are Capital Improvement Projects?
The Newport Water Division (NWD) manages an ongoing Capital Improvement Project (CIP) Program to protect and enhance drinking water infrastructure from source to tap. The drinking water system expands across Aquidneck Island, Tiverton, and Little Compton, serving Newport, parts of Middletown, and Portsmouth. It also supplies water to Naval Station Newport and Portsmouth Water & Fire District.
NWD’s CIPs address aging water infrastructure and the evolving needs of the community and system. The water system dates back to 1876 when the City of Newport accepted George Norman’s proposal to create a comprehensive waterworks system. As system assets age and regional demands grow, ongoing reinvestment is critical to maintaining safe, reliable service and meeting increasingly stringent water quality standards.
In response to these challenges, NWD carries out a wide range of improvement projects that preserve the integrity of the water supply and distribution system, ensure regulatory compliance, and protect public health. These infrastructure investments are essential to reducing long-term operational costs, improving system resilience, and ensuring uninterrupted service for current and future generations.
How are Projects Funded?
NWD operates as an enterprise fund, meaning it manages its own finances separately from the City’s general budget. Routine operations are funded through water rates, which are collected via customers’ water bills, not through taxes. In contrast, Capital Improvement Projects are typically financed through a combination of water rates, State Revolving Fund (SRF) loans, bonds, and/or grant awards.
While the Division works diligently to secure outside funding, available grants and loans are insufficient to cover all project needs across both systems. Additionally, the current CIP list in the annual budget does not capture all critical large-scale projects, as new needs arise regularly based on system conditions and performance assessments.
Program Goals
- Water main replacements and distribution system improvements
- Reservoir and watershed protection
- Treatment plant modernization and technology upgrades
- Rehabilitate and modernize aging drinking water system assets
- Enhancing system pressure, flow, and fire protection capacity
- Compliance with evolving state and federal drinking water standards
Through its CIP Program, NWD is working to preserve water quality, ensure service reliability, and support community growth while responsibly planning for tomorrow’s challenges.
Coming Soon: Explore our capital improvement projects: past, present, and future, through a new interactive map designed to keep our community informed!