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 Process for existing and new RSIDs

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    There are two separate but related public processes regarding the existing and new RSIDs for the Lolo sewer and water system:

    • The first is a cleanup resolution to redefine the boundaries of the existing RSID (8901) to ensure only properties that are receiving sewer and water services are being assessed. Affected property owners received notice of this change and the protest process in the fall. The county commissioners will consider adopting the new boundaries at their public hearing meeting at 2 p.m. Thursday, Feb. 12.

    • The second is a resolution to create a new RSID (490) that will mirror the boundaries of RSID 8901 but is legally necessary to pay for upgrades the system. The County is aiming to begin the public process for this sometime this spring. Affected property owners will receive a postcard with information about the new district and the process for protesting (in accordance with MCA 7-12-2109). The commissioners would then consider approving the new RSID at another public meeting.

    Residents will be able to attend both meetings in person or remotely:

    • In-person location: 200 W. Broadway, Missoula County Courthouse, Sophie Moiese Room

    • Virtual option: Residents can attend the meeting via Microsoft Teams. To join the meeting on your device, follow the links on the agenda that will be published on the Missoula County’s civic clerk portal.

  • Tuesday, June 10 Update

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    Public Works staff will provide an update on proposed repairs and expansion of the Lolo Sewer and Water system at the Tuesday, June 10, Lolo Community Council meeting. Staff will discuss the possibility of using impact fees (one-time fees developers and landowners pay on new construction) to fund expansion of the system, as well as tentative timelines for repairs and upgrades.

    Meeting details:
    7 p.m.
    Lolo Community Center (12345 Hwy. 93 S.)


  • Next Steps: Step-by-Step Timeline

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    Improving Lolo's Water & Wastewater Systems

    What's happening, how it works and what's next.

    What's the Goal?

    Modern upgrades to water in 2026 and wastewater in 2027 with support from grants and public participation. This process uses a tool called an RSID — a way for neighbors to share costs for shared improvements.

    A Rural Special Improvement District (RSID) helps fund local infrastructure. Property owners within the district contribute, and everyone gets a say before it's finalized.

    The County will pursue grants and loan forgiveness to reduce resident costs.

    Step-by-Step Timeline

    1. Draft RSID: County drafts plan and assessment method.
    2. Meeting #1: Commissioners review and open protest period.
    3. Protest Period: Property owners can protest in writing.
    4. Meeting #2: Hearing is closed; protests reviewed.
    5. Final RSID Vote: Commissioners can approve the RSID.
    6. Assessment Plan: Tax method for cost-sharing is defined.
    7. Objection Notices: Mailed and published notices go out.
    8. Meeting #3: Final public hearing on assessments.
    9. Certification: RSID is finalized and funding can begin.

    But aren't we already in an RSID?

    Yes, but a new one, with the exact same boundaries of the current one, will need to be created to fund these capital improvements. As new connections are added, the boundary will expand to include these new connections.

    Residents should watch their mail for notices and protest info.

    Construction Timeline

    2026: Water system upgrades begin.

    2027: Wastewater upgrades begin.

    View the Next Steps .pdf here.

  • Open Houses

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    Open Houses

    There will be two open houses on Tuesday, April 22 and Tuesday, April 29 at 4-7 p.m. at the Lolo School, in the atrium next to the gym entrance.

    Representatives from Missoula County, the Lolo Water and Wastewater RSID and HDR will be there to share information and listen to feedback from members of the community. Residents are encouraged to drop by any time during those hours to talk to officials about the project. There will be no formal presentation.

Page last updated: 03 Feb 2026, 04:56 PM