PETERSBURG - The U.S. Department of Agriculture has approved a $9.2 million loan for improvements to the water utility system in the city of Petersburg. The funding is part of $392 million aimed at rebuilding and improving rural water and wastewater infrastructure in 42 states.

The city plans to use the funding for the construction of a new water treatment plant to replace the current facility, which it says has outlived its useful life and is in poor condition. The funding will also be used to add a new well at the current well-field and an additional elevated storage tank. 

The city says the effort will also help with economic development growth that is expected with the completion of I-69 near the city. Petersburg also sells water to the community of Otwell and the regional water system Pike-Gibson Water. 

A timeframe for completion of the project was not given.