Londonderry is moving ahead with a major initiative designed to help residents connect their homes to newly installed public water lines, marking one of the town’s most significant neighborhood infrastructure projects in recent years.
As construction continues on several water line extensions, town officials are preparing to establish a Water Special Assessment District, a financing tool allowed under New Hampshire law that helps homeowners cover the cost of connecting to public water service.
For many residents, the connection process – including trenching, installing service lines, and tying into the system – can cost thousands of dollars. Under the proposed program, the Town would pay those upfront costs, and homeowners would repay the amount over time through their property tax bills. The repayment plan would carry no interest, aside from a small administrative fee, allowing residents to avoid a large one-time expense.
Before applying, homeowners would be required to seek any available state rebates and obtain a contractor’s estimate to ensure all outside funding sources are considered first.
The first assessment district is expected to include approximately 197 homes along Parmenter Road, High Range Road, Old Nashua Road, South Road, and Old Derry Road – areas scheduled to receive operational water lines by the end of the 2026 construction season.
State law limits participation to properties receiving a direct benefit from the project, meaning only homes with access to the new water lines would be eligible.
Residents in the affected neighborhoods will receive letters outlining the program, and the Town Council will hold a public hearing before formally establishing the district. The process also requires a petition signed by at least half of the property owners representing 65 percent of the district’s assessed property value.
Funding for the first round of connections was approved by voters in March 2026, with $400,000 available for the program. Applications will open Aug. 1 and run through Sept. 30. Any remaining funds will then be distributed on a first-come, first-served basis.
Town officials say the number of residents left on the waiting list after the initial application period will help determine whether additional funding is requested in the FY28 budget cycle.
While the program does not cover water company fees or inspection costs, it is intended to make the most expensive part of the process – the physical connection itself – far more affordable.
For residents dealing with aging wells or water quality concerns, the initiative could provide long-awaited access to a more reliable water source.
Town officials say the program is part of a broader effort to expand access to public water, support public health, and ensure infrastructure costs are shared fairly among the residents who directly benefit.