State Grant Secures Major Infrastructure Investment for Watertown Development
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State Grant Secures Major Infrastructure Investment for Watertown Development

Red and yellow binders labeled "Applications" and "Grants" on a desk with papers, a pen, calculator, and logos for Watertown and Northeast Radio SD.

The City of Watertown has received a significant boost for local economic development after the South Dakota Board of Economic Development approved a $500,000 Local Infrastructure Grant. The funding is earmarked for a crucial sanitary sewer project in the Calvin Trade area and substantially reduces the local financial obligation.


City Manager Alan Stager and City Engineer Justin Petersen confirmed the grant will support the completion of the larger, approximately $3.7 million infrastructure initiative. The project is primarily funded by a U.S. Economic Development Authority (EDA) grant of nearly $3 million.

Stager explained the importance of the recent state grant, noting that it will cover a considerable portion of the local share originally committed by four entities: the City of Watertown, Watertown Municipal Utilities, the Watertown Development Company (WDC), and Codington County.


“It really shows that the county is committed to economic development within the community,” Stager said, emphasizing the unique, unified effort among all local partners.


Unlocking Future Development

The sewer project is vital to the Watertown Development Company’s mission. The Calvin Trade area, located near the Century Building on the South Bypass Road, has been limited in its development potential due to a lack of sanitary sewer access.


Completion of the sewer line will immediately open up new opportunities for businesses ready to build in the area. Furthermore, Stager noted that the infrastructure will service an additional 300 acres to the east and south of the current property, ensuring ample land is available for the long-term expansion of the community.


“The economic development projects always follow the infrastructure,” Stager noted, underscoring the necessity of proactive planning.


Project Timeline

Petersen stated that the project is currently under design. Bidding is anticipated in the February or March timeframe, with construction scheduled to begin next summer. Petersen also expressed optimism regarding project costs, noting an encouraging leveling out in construction bid prices over the past year.


Stager concluded that investments like this are key to fostering growth, particularly by welcoming entrepreneurial and “next-generation” ideas that continue to move Watertown forward.

Watertown City Manager Alan Stage (right) & City Engineer Justin Petersen (left) on Northeast Radio SD LIVE 12/15/25

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