Despite the need, the largest federal aid program for drinking water improvements, the Drinking Water State Revolving Fund, has more than $1 billion sitting unspent in government accounts, according to a review of data by The Associated Press. Sarah Pillsbury, administrator of the state's Drinking Water and Groundwater Bureau at the Department of Environmental Services, said that there's almost always a lag in spending but that the money gets spent within two loan cycles. The precinct has used the fund in the past and is approved for a $400,000 loan to build a pipeline but will seek private financing instead. Because water from Mountain Pond comes overland to the reservoir, it contains loads of particles that turn the water into "tea" during spring, summer and fall. [...] after the 2010 census indicated the average household income was higher than the state average, the precinct won't get a discount and would have to pay back the full loan and adhere to federal rules including bidding out the job and paying prevailing federal labor wages.