LOUISVILLE — When the town held meetings on the creation of a third water district, residents were told they could expect to pay $631 per year for water service.

On Wednesday night, Town Supervisor Larry R. Legault informed Town Council members the town has received an additional $400,000 in grant funding.

“I’m happy for the people of Water District 3,” Mr. Legault said. “We had told them this was a possibility.”

The newfound funding will lower the annual cost to $595 per customer.

The funding from the state Environmental Facilities Corp.’s Drinking Water State Revolving Fund now includes a $2 million grant with an interest-free loan of $7,275,000 to be paid back over 30 years.

Mr. Legault said bids for the project will be requested during the winter to hopefully start in the spring.

According to a letter from Matthew J. Driscoll, Environmental Facilities Corp. president, the $9.275 million project will bring water to more than 400 homes in Louisville and a portion of Norfolk.

Water District 3 will provide service to routes 37 and 39 and part of Willard Road.

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