Tampa Bay Water will receive a $10 million state grant for an expansion that will add 12.5 million gallons of daily drinking-water capacity, including service for Pasco County.

Gov. Ron DeSantis announced the grant Wednesday, Oct. 28, in Crystal River as part of a $100 million investment across 45 water projects statewide. Half the money funds 22 alternative water supply projects. The other half supports 23 springs restoration projects.

The $10 million grant to Tampa Bay Water will help fund an ongoing expansion of its Tampa Bay Regional Surface Water Treatment Plant. Tampa Bay Water is the largest wholesale water supplier in Florida, providing drinking water to member governments including Pasco County, Hillsborough County, Pinellas County and the cities of New Port Richey, St. Petersburg and Tampa. Those governments supply water to more than 2.6 million residents, according to Tampa Bay Water.

The funding arrives during a severe drought. The Southwest Florida Water Management District (SWFWMD) extended a Modified Phase III "Extreme" Water Shortage through March 31, 2027, requiring one-day-per-week watering restrictions across Pasco and 10 other counties, according to SWFWMD, as reported by the Hernando Sun. Tampa Bay Water's C.W. Bill Young Regional Reservoir held about 7.87 billion gallons as of Sept. 20, roughly half its storage capacity.

SWFWMD also issued an emergency order allowing Tampa Bay Water additional withdrawals from the Tampa Bypass Canal to maintain supply during the drought. That order expires March 31, 2027.

$181 million expansion already underway

Tampa Bay Water broke ground on the plant expansion March 2. The full project carries a $181 million price tag, funded through revenue bonds and federal and state grants. According to Tampa Bay Water's groundbreaking announcement, the expansion will optimize the existing facility to produce additional drinking water without increasing permitted river withdrawals.

The expansion is expected to come online in 2028 and meet the region's drinking water demands through 2033, according to Tampa Bay Water.

The region needs more capacity. Tampa Bay Water's Long-term Master Water Plan projects the Tampa Bay area will need up to 38 million gallons per day of additional supply by 2043.

Pasco already weighing water demands

Pasco County commissioners adopted Ordinance 26-28 on July 14, imposing a temporary moratorium on data center development applications. The ordinance cited the strain such facilities could place on regional water supplies and water treatment infrastructure, particularly in rapidly growing areas like Pasco County. It specifically named Tampa Bay Water and SWFWMD as partners emphasizing careful management of groundwater and surface water resources.

The state's Alternative Water Supply Grant Program has received $385 million in legislative funding since 2019. Projects funded through the program are expected to produce more than 400 million gallons of water per day when fully operational, according to the Florida Department of Environmental Protection. The grant announcement did not set a separate completion date for the expansion, TBB Water Magazine reported.