The bill establishes the Water Infrastructure Development Fund in South Dakota, which will be financed through legislative appropriations, federal grants for Bureau of Reclamation rural water projects, and interest from investments and loans. The fund is designated for the construction, planning, and development of rural water projects within the state. The Board of Water and Natural Resources is authorized to award grants and loans from this fund, with grants capped at ten percent of the estimated construction costs and loans at fifty percent. Additionally, the board is tasked with creating criteria for selecting projects and managing the associated loans and grants.

To support the establishment of this fund, the bill mandates the transfer of $3,000,000 from the general fund to the newly created Water Infrastructure Development Fund. The bill also declares an emergency, allowing it to take effect immediately upon passage and approval, emphasizing its importance for the support of state government and public institutions.