Lolo Water and Wastewater System Improvements

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Lolo RSID 901 Sewer and Water Impact Fee Study

View the RSID Map and Boundary here.

The Missoula County commissioners voted to adopt Lolo sewer and water impact fees at their Jan. 8 public hearing meeting. Impact fees are one-time fees assessed on new construction projects that developers and landowners pay to support new or expanded infrastructure needed; they are not a new tax or assessment on existing properties.

Project overview:

Missoula County is currently considering establishing a new Rural Special Improvement District to help fund needed repairs and upgrades to the water and wastewater system in Lolo.

The system has reached full capacity, and no new connections are allowed. Additionally, the existing infrastructure has deficiencies that need to be addressed to ensure long-term reliability. The proposed improvements aim to resolve these deficiencies while also creating additional capacity for future growth.

The County aims to use a combination of funding sources to pay for these improvements and upgrades:

  • Impact fees, which are one-time fees assessed on new construction projects that developers and landowners pay to support new or expanded infrastructure needed; they are not a new tax or assessment on existing properties. The commissioners approved using impact fees for the Lolo sewer and water system at their Jan. 8 public hearing meeting. These fees are expected to generate around $8 million in the next few years.

  • $1.75 million in federal funding that Western Montana's congressional delegation recently secured through the appropriations process.

  • Fees assessed through the creation of a new Rural Special Improvement District (RSID). This new RSID would mirror the boundaries of existing RSID 8901, which funds current sewer and water operations for properties in the district. (The current district will also be redefined — see news item below.)

  • Other state and federal funding sources

The estimated total cost the project is $11 million, though this is subject to change. At least $3 million will be covered by impact fees from new users. The County will also apply put the $1.75 million in federal appropriations toward the project and apply for state loan programs if the new RSID is created. The goal is to minimize costs on existing properties already in the sewer and water district.

Timeline:

Pending completion of the public processes for the RSIDs and confirmation of funding, Missoula County Public Works plans to bid the project toward the end of 2026. Construction would tentatively begin in June 2027, and property owners would see any new assessments on their tax bills in the fall of 2027.

Current System Challenges:

  • Water System Deficiencies: If well No. 3, the largest well, were to fail during peak demand, the system would struggle to provide enough water for household use and fire suppression.

  • Wastewater System Deficiencies: The treatment plant lacks redundancy — if a critical component like the bioreactor or secondary clarifier fails, managing sewage would become a serious challenge.

Proposed Improvements:

Planned improvements include:

  • Upsizing wells No. 1 and No. 2

  • Upsizing a key water main

  • Adding a redundant bioreactor and secondary clarifier


The cost of these improvements can be found in this summary.

Water Line Size Examples:

  • Residential: 3/4-inch to 1-inch

  • Commercial: 1-inch to 2-inches

  • A carwash would typically have a 1 1/2-inch to 2-inch line size

  • A multi-family home (four-Plex) would typically have 1 1/4-inch to 11/2-inch line size

  • A hotel would have a 2-inch or larger line size

  • Fire line (suppression) are 4-inch lines but do not count against the capacity of the system.

Public Feedback:

The County is seeking public feedback on the creation of the new RSID. Members of RSID 8901 have the final say on the proposed improvements through a protest process. Comments can be left below.

Key Documents:

Lolo RSID 901 Sewer and Water Impact Fee Study

View the RSID Map and Boundary here.

The Missoula County commissioners voted to adopt Lolo sewer and water impact fees at their Jan. 8 public hearing meeting. Impact fees are one-time fees assessed on new construction projects that developers and landowners pay to support new or expanded infrastructure needed; they are not a new tax or assessment on existing properties.

Project overview:

Missoula County is currently considering establishing a new Rural Special Improvement District to help fund needed repairs and upgrades to the water and wastewater system in Lolo.

The system has reached full capacity, and no new connections are allowed. Additionally, the existing infrastructure has deficiencies that need to be addressed to ensure long-term reliability. The proposed improvements aim to resolve these deficiencies while also creating additional capacity for future growth.

The County aims to use a combination of funding sources to pay for these improvements and upgrades:

  • Impact fees, which are one-time fees assessed on new construction projects that developers and landowners pay to support new or expanded infrastructure needed; they are not a new tax or assessment on existing properties. The commissioners approved using impact fees for the Lolo sewer and water system at their Jan. 8 public hearing meeting. These fees are expected to generate around $8 million in the next few years.

  • $1.75 million in federal funding that Western Montana's congressional delegation recently secured through the appropriations process.

  • Fees assessed through the creation of a new Rural Special Improvement District (RSID). This new RSID would mirror the boundaries of existing RSID 8901, which funds current sewer and water operations for properties in the district. (The current district will also be redefined — see news item below.)

  • Other state and federal funding sources

The estimated total cost the project is $11 million, though this is subject to change. At least $3 million will be covered by impact fees from new users. The County will also apply put the $1.75 million in federal appropriations toward the project and apply for state loan programs if the new RSID is created. The goal is to minimize costs on existing properties already in the sewer and water district.

Timeline:

Pending completion of the public processes for the RSIDs and confirmation of funding, Missoula County Public Works plans to bid the project toward the end of 2026. Construction would tentatively begin in June 2027, and property owners would see any new assessments on their tax bills in the fall of 2027.

Current System Challenges:

  • Water System Deficiencies: If well No. 3, the largest well, were to fail during peak demand, the system would struggle to provide enough water for household use and fire suppression.

  • Wastewater System Deficiencies: The treatment plant lacks redundancy — if a critical component like the bioreactor or secondary clarifier fails, managing sewage would become a serious challenge.

Proposed Improvements:

Planned improvements include:

  • Upsizing wells No. 1 and No. 2

  • Upsizing a key water main

  • Adding a redundant bioreactor and secondary clarifier


The cost of these improvements can be found in this summary.

Water Line Size Examples:

  • Residential: 3/4-inch to 1-inch

  • Commercial: 1-inch to 2-inches

  • A carwash would typically have a 1 1/2-inch to 2-inch line size

  • A multi-family home (four-Plex) would typically have 1 1/4-inch to 11/2-inch line size

  • A hotel would have a 2-inch or larger line size

  • Fire line (suppression) are 4-inch lines but do not count against the capacity of the system.

Public Feedback:

The County is seeking public feedback on the creation of the new RSID. Members of RSID 8901 have the final say on the proposed improvements through a protest process. Comments can be left below.

Key Documents:

Public Feedback

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I don't want to pay for some elses developments... we're taxed enough .....let the developer PAY !!! Our sewer/water was fine till a "developer" moved in !!

Wyrhair 4 months ago
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Is there a better alternative to the current "Real Estate Value" pricing model? The current system only takes into account essentially the land value, not the Market value of a property. This can be extremely inequitable in some residential case. Especially for some mediaum and large residential parcels in lolo that are not even using sewer and water but are part of the RSID. For example, my family pays 3x the average rate on a property that is part of the RSID for which we currently do not use and are not even allowed to hook up the the current system...

tgruetzm 9 months ago
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Thank you to Shane and Cora at HDR for sharing updates over the past couple of years at Lolo Community Council meetings. Because of those, I have been well-informed about this process and am happy for it to move forward.

ascully 9 months ago
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Thanks for putting this out. Looking forward to the meeting. This situation has been coming for a long time so it’s not a surprise to me. I’m curious to learn how the RSID would be formed.
Thanks again. I appreciate the information.

MM5178 10 months ago
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Page last updated: 03 Feb 2026, 04:56 PM