The fund was established in 1986 to provide financial assistance to municipalities for planning, design and construction of wastewater collection and treatment projects. This program was developed to replace state and federal grant programs that had existed since the 1950s. The 1987 amendments to the Federal Clean Water Act required that states establish a revolving loan program by 1989.
Combined sewers are old sewer systems that receive both sewage and stormwater runoff.
These systems exist in Hartford, New Haven, Bridgeport, Waterbury and eight smaller cities. Because of the high cost of CSO projects, the cities involved, and their statewide significance, especially to Long Island Sound, these projects are given special consideration. Through its low interest rate and generous grant funding, the CWF provides Connecticut municipalities with one of the most favorable financing packages for wastewater projects in the United States. The CWF is one of the most aggressive in the country. While many states have met only the minimum match to receive the federal funds, Connecticut has met the match 10 times over.