The bill proposes the creation of a new Water Infrastructure Development Fund in South Dakota, which will be financed through legislative appropriations, federal grants for specific rural water projects, and interest from investments and loans. The fund is designated for the construction, planning, and development of water projects that are either listed on the Bureau of Reclamation's rural water projects list for 2025 or later or have received congressional authorization. Expenditures from this fund will require special appropriations from the Legislature.

Additionally, the bill outlines the administration of the fund by the Board of Water and Natural Resources, which may award grants up to ten percent of the estimated construction costs and provide loans not exceeding fifty percent of those costs. The loans must be secured by the best available security, including a pledge of assets and project revenues. The board is also empowered to establish criteria for selecting projects eligible for funding and to set the terms and conditions for the loans and grants through rules promulgated under existing legislative procedures.