$250,000 VCEDA Grant Will Be Used Toward New Water Tank Project at Southern Gap
SOUTHERN GAP, VA – OCTOBER 1, 2026 – A $250,000 grant to the Buchanan County Industrial Development Authority (IDA) for planning, design, engineering, permitting and costs associated for a new water tank to serve the Southern Gap development in Buchanan County, VA was recently approved by the Virginia Coalfield Economic Development Authority (VCEDA).
“The IDA has determined that the development of Southern Gap has reached the necessary levels that a second municipal water tank is needed within the development site to provide the necessary domestic and fire-flow water supply for the continued development of Southern Gap,” said VCEDA Executive Director/General Counsel Jonathan Belcher.
The current tank, which is 500,000 gallons, is located on Airport Road and is not sufficient to handle the full build-out of Southern Gap. A second tank, which is estimated at 1,000,000 gallons, is needed to handle the domestic water and fire-flow demands of the Southern Gap development as well as the Breaks Regional Airport development, according to the IDA application to VCEDA for funding.
The new tank is proposed to be developed adjacent to the existing water tank on Airport Road and once constructed, the tank will be transferred to the Buchanan County Public Service Authority for permanent operation.
“As we continue to expand upon the Southern Gap Development, we want to ensure we have the proper capabilities to provide such critical infrastructure as municipal water,” said Buchanan County Economic Development Director Jeremy Ward. “This project is essential for the current and future developments at Southern Gap, as well as the future Breaks Regional Airport.”
About Virginia Coalfield Economic Development Authority and Southwest Virginia’s e-Region: The Virginia Coalfield Economic Development Authority, created by the Virginia General Assembly in 1988 to enhance and diversify the region’s economy and help create jobs, markets Southwest Virginia’s e-Region and its focus on electronic information technology, energy, education, emerging technologies, and entrepreneurship. VCEDA is a unique economic development organization that manages funds for economic development projects from a percentage of the coal and natural gas severance taxes paid by coal and natural gas companies that operate in the region. Located in southwestern Virginia, the region includes Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise counties and the City of Norton. www.vceda.us or www.e-Region.org.
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PHOTO CAPTION: VCEDA Executive Director/General Counsel Jonathan Belcher, right, presents a ceremonial check for $250,000 to Buchanan County Administrator Craig Horn, center, for the Buchanan County IDA to use toward planning and design of a new water tank to serve the Southern Gap area. Also pictured, left, is Terra Tech Engineer Billie Campbell.