The Town of Kremmling has been approved — with conditions — to receive $2 million in federal stimulus money, according to Town Manager Ted Soltis.

The conditions are related to technical aspects of the loan application and are being completed or have been submitted, he said.

The town intends to use the money to finish replacement of its old steel water distribution lines, which are leaking more than half of the town's treated water into the ground.

The town has been working on the project since last year, with the assistance of state grants. The town received half the grant money it requested for this year's phase of the project and had planned to leverage more state grant money next year with $500,000 in town matching funds.

The $2 million grant will make that unnecessary, Soltis told Town Council members last week.

The federal stimulus money will not be available until the end of November, too late for this year's portion of the project, though it will permit an early start on the final phase of the project next year, according to town officials.