Prior to 2001, the Town of Eureka's wastewater system had multiple problems:  Tow lift stations needed improvements.  Some sewer pipes had deteriorated so much that groundwater infiltrated the collection system causing wastewater flows 4 to 5 times over the sanitary flows which subsequently overloaded the lagoon treatment system.  Also, the wastewater lagoon's aeration system had exceeded is lifetime and was not treating the wastewater efficiently.  There were  unsewered areas in and near the town that affected groundwater quality and needed wastewater service.  The biggest problem was disposal of the treated water.

Eureka put together a funding package that included a $100,000 USDA Rural Development Community Program grant and a $1,002,330 loan; a $300,000 Montana CDBG grant, a $100,000 Montana DNRC grant and $30,000 of the town's sewer funds.  The improvements were done in three phases from 2001 through 2003.