Creates a water system acquisition and rehabilitation program.

Declares the program will be jointly administered with the public works board and the department of community, trade, and economic development. All financing provided through the program must be in the form of grants that partially cover project costs. The maximum grant to any eligible entity may not exceed twenty-five percent of the funds allocated to the appropriation in any fiscal year.

Directs the joint legislative audit and review committee to prepare a report on the program.