Lake Elmo is building a new well, paid for in large part from the state's first infusion of money from a multimillion-dollar 3M settlement.
The state is giving the city about $2 million to construct a well with a 1,250 gallons-per-minute capacity.
The money is part of the $850 million court settlement reached last February between Minnesota and 3M Co. over groundwater contaminated by perfluorochemicals, or PFCs.
The city shut down one of its wells and a water tower a year ago after the state Health Department found excessive levels of PFCs. The chemicals were developed and manufactured by Maplewood-based 3M, which dumped factory waste into Washington County landfills. Research shows that exposure to PFCs in drinking water has been linked to types of cancer, thyroid and liver issues, and human developmental problems.

Lake Elmo's new well will have an increased pumping capacity over the contaminated well, so the city will pay a share of the cost, putting about $240,000 toward the project.
"We've been on pins and needles for the last year as we waited for a resolution," City Administrator Kristina Handt said. "We obviously have some relief that we finally have a direction to move forward in [and] are thankful to the state for working with us on this issue."
Still, the timeline has felt painstakingly slow, she said.
The city had hoped to begin preliminary work on a new well last fall, when the Minnesota Pollution Control Agency (MPCA) told Lake Elmo it would need to study six different options, including adding a new well.