Spencer will be getting $700,000 to improve water service.

Gov. Joe Manchin announced ten additional projects totaling more than $6 million for grants from the Appalachian Regional Commission Investment Program for 2007.

The Spencer allotment will upgrade the water treatment plant, improve reliability, control costs, allow for future extension and benefit the city and the town of Reedy's 2,400 customers as well as future customers when the system is expanded.

Mayor Terry Williams said there is a $2.8 million plan to update the 35-year-old water treatment facility.

Spencer has received some federal money for the project and is applying for USDA Rural Development loans and grants.

The Spencer plant can process more than 60,000 gallons of water a day. Williams says that capacity needs to be increased.

Spencer and Roane County officials have been working to expand municipal waterlines further into the county.

Water projects to Amma and Left Hand have about 100 new customers. Poca River Road and Clio could add another 100 new customers.

Roane officials want to extend water lines to the Calhoun and Jackson county lines.