The city of Dawsonville has again been denied a state loan that would advance the planning phase of the proposed Calhoun Creek Reservoir.

The project was not among the four strategically-located reservoir and water supply efforts in which the Governor's Water Supply Program plans to invest up to $44.9 million.

The funding announcement was made Nov. 6 by the Georgia Environmental Finance Authority, the lead agency for state energy and water use programs.

Calhoun Creek would straddle the Dawson-Lumpkin County line and fall within the city limits of Dawsonville. The reservoir would draw from the Etowah and Chattahoochee river basins.

It was the second time the city has applied for the loan. On April 30, it sought $20 million of the $140 million available in direct state investment as part of the Governor's Water Supply Project through the Georgia Environmental Finance Authority.

"This is just another round in this," said Dawsonville Mayor James Grogan. "This time, the money was minimal. As with last time, there are still two to three projects ahead of us."

The city's initial request was denied in June. At the time, Grogan said the reasoning from the governor was "because there [was] no money available [for Dawsonville]."

However, Grogan said the city would most certainly reapply in January for the next round of funding from the program.

"There's no question about it," he said. "We will be applying again, most definitely."