The city of Ouray has been awarded a $750,000 grant by the Colorado Department of Local Affairs to help pay for a new water treatment plant.

City officials received word last week about the grant, which City Administrator Silas Clarke said will have a direct impact on the rates city water customers pay. The City Council has increased water rates the last few years in anticipation of having to build the new plant.

“We’re extremely pleased, and extremely pleased that we received the whole $750,0...