The city of Watervliet is receiving more than $7 million in federal funding for improvements to its water system. The office of Congressman Fred Upton announced Thursday the two low-interest loans, one for $4 million and the other for $3.2 million, are provided through the U.S. Department of Agriculture’s Rural Development. Both loans will sit at the low interest rate of 2% over the duration of 40 years. It’s estimated the loans will help pay for work that will affect 3,000 residents. Upton says the money will be used to replace undersized and aging water mains throughout the city. Funds will also be used to replace lead water service lines. He adds up-to-date infrastructure is “absolutely critical” across southwest Michigan.