The water-treatment plant could provide fresh, healthy water for Seville, Yettem, Orosi, Cutler and East Orosi -- an obvious consolidation of service that the state would normally applaud. So why did the state waffle?

Because the lead applicant, Orosi, had managed to clear up its persistent water problem -- for the time being -- with a new well.

Experts say it's only a matter of time before Orosi's wells will again have the same nitrate problem as the other nearby towns. The entire region has nitrates moving through the underground water.

State officials did not reveal how the technicality was cleared up, but an application from a different town probably would work, say experts on such water grants and loans. The money still has not been approved, according to activists working with Seville.

If the $500,000 comes through, it will open the door to providing Kings River water to the region. The effort is led by the Alta Irrigation District, which delivers irrigation water to farmers.

The water would not come from irrigation allotments, said Alta manager Chris Kapheim. Instead, extra river water will be allowed to seep into the ground after wet winters, such as last year. It is called water banking.

Alta already has established a small ground-water banking site and a second is in the works. It would take five years to complete the water-treatment plant.

The higher-quality river water would be blended with the well water, a common way to dilute chemical contamination and meet water-quality targets.

For residents to have any peace of mind about their tap water, many believe this is the only long-term solution that makes sense.

"They really need water," said Kapheim.

But that isn't Seville's only hang-up this year with the state public health department.

Public-health officials dropped another project for the town, based again on a technicality. The town was applying for study money to start rebuilding its decaying piping system and drill a new well.

State officials rejected the application because the town's private water company had gone bankrupt and Tulare County was running it.

The town was applying for funds under the wrong category. Residents would have to form their own community-service district to get the money.

When asked about the situation, state officials replied by email, saying they would not explain the decision or talk about the details. Officials said they were working out details with Seville.

Now, the study funding for the Seville distribution system and new well is back on the table as part of a different proposal. The result, however, is still the same. The town waits for state action on its application.

Tooleville's long negotiation

About 15 miles south of Seville, Tooleville residents have been living at least a decade with bad water. The problem comes and goes, leaving people to wonder when it's safe to drink from the tap.

Over the past five years, townfolk negotiated to get safe water by connecting with Exeter, a city of 10,000 about two miles northwest. Tooleville residents want to become Exeter water customers. Exeter officials say they want to help.

The hang-up: Exeter has long feared costs would rise for its own residents. The fear persists even though state law has been changed twice to address one of the main issues -- prevailing wage law.

As a charter city, Exeter is exempt from paying high prevailing wages required in California. But if Exeter had extended its service beyond city limits several years ago, it would have violated charter city status. Residents might have been forced to absorb an overall 30% increase in labor costs.