Fayette is proposing to address needs at one of their sewer lagoons of which raw untreated waste is flowing through breaks in the DAM and flowing into a creek via a compromised collection system

The City of Fayette received a $124,715 Project Grant from the Delta Regional Authority under the Delta Area Economic Development (CFDA 90.201) program. The grant funding will be used over a 2-year period ending in November 2025 to address issues with a compromised sewer lagoon in Fayette, MS. Specifically, the grant will be used to repair breaks in the dam of the sewer lagoon that had allowed raw, untreated waste to flow into a nearby creek due to problems with the city's sewer collection system. This federal grant award aims to mitigate the environmental impact and infrastructure issues caused by the compromised sewer lagoon.

In addition to this primary Project Grant, the City of Fayette has received two federal grant sub-awards from the Mississippi Development Authority for other sewer improvement projects, though the specific funding amounts are not provided. The city also received a previous $140,350 Project Grant from the Delta Regional Authority in 2020 for general "sewer improvement" purposes that was completed in September 2022.