The State Board of Water Resources has approved a $270,000 loan to Escalante to help the town develop a new water source to deal with drought conditions, authorities said.

The money will be used to drill a well into a deep formation believed to hold a large supply of drinking water and to build a 500,000-gallon water storage tank. The project was one of five approved for funding at the board's November meeting.Other projects receiving funding:

- Hyrum in Cache County will get $1.1 million to install a pressurized irrigation system.

- Thatcher-Penrose Service District in Box Elder County will get $218,000 to build a culinary water storage tank and install meters and pipeline, and Mt. Pleasant, Sanpete County, $863,000 for culinary water system improvements.