The Town of Caneadea in Allegany County will receive a federal stimulus grant of $8.3 million to upgrade the town water system, Gov. David A. Paterson said. The project will be supplemented with additional funding through the New York Drinking Water Revolving Fund.

The grant will be used to construct treatment facilities for the town’s well source, add a new well source so that water supply is sufficient, replace water lines and provide public water to areas currently served by poor-quality private wells.