About $300,000 in federal funding has been released for a water project that would help extend the water supply in Brattleboro to the village of Algiers in Guilford.
The Environmental Protection Agency has released the funds.
Guilford and Brattleboro have been developing the plan for more than two years.
The Brattleboro Reformer reports under the current agreement, Guilford owns the water line, but only Brattleboro can work on it if there are problems.
The towns are still working out details on who will read the meters and handle the billing.