AMHERST — More than one-third of the almost $19 million cost to Amherst for rebuilding the Centennial water treatment plant in Pelham is being covered directly by the state through principal forgiveness on two loans.

Town officials announced on Dec. 28 that Amherst is in line for almost $7 million in principal forgiveness on the loans from the Clean Water Trust, with $6 million already awarded and nearly $1 million more pending.

The Clean Water Trust helps communities build or replace infrastructure that enhances ground and surface water resources, ensures the safety of drinking water and protects public health, through awarding low-interest loans and grants to cities, towns and water utilities.

“These funds come at a crucial time as we continue to replace critical infrastructure for the town,” Town Manager Paul Bockelman said in a statement. “This work must be done so we can continue to provide an adequate supply of clean drinking water to town residents and our institutional partners well into the future.”

Last winter, the town accepted a low bid of $18.87 million from R.H. White Construction Co. of Auburn to rebuild the plant that treats drinking water from the Hills and Hawley reservoirs in Pelham. The total cost is around $21.5 million. Construction began in May with demolition of the facility, with work finishing in May 2025.

The plant is using new filtration technology known as dissolved air flotation, improving operations by reducing the amount of disinfection byproducts from the current water treatment process.

The water treatment plant has been offline in recent years, with the town’s primary water sources being the Atkins Reservoir in Shutesbury, with its water going to a treatment plant in the Cushman section of Amherst, and wells in the Lawrence Swamp in South Amherst, supplying drinking water to residents and businesses, as well as the Amherst College and Hampshire College campuses, the University of Massachusetts, and parts of Pelham, Belchertown, Leverett and Hadley.