CANTON – Voters on Tuesday narrowly rejected more than $1.5 million in federal grants and loans to install water and sewer lines in the proposed new village center off Edmunds Road.

A total of 290 residents turned out at the polls for the all-day referendum.

The money offered by the U.S. Department of Agriculture Rural Development was:

• $336,000 sewer grant; rejected 152-145.

• $448,000 sewer loan; rejected 159-138.

• $355,000 water grant; rejected 152-144.

• $434,000 water loan; rejected 156-136.

Sue Gammon, who initiated the petition to bring the funding issue before voters a fourth time said Tuesday night by phone, “I think it’s a shame. In the long run we will probably regret it. It is a disappointment.”

Scotty Kilbreth, chairman of the Board of Selectmen, said that, at first, he was for the project because it would replace people who were on the water and sewer system in the old village, but so many of those people have moved out of town.

“It’s more of a risk now,” he said. “This was voted down three times. It’s a sad situation the town is in right now, but we have to live with the consequences. It doesn’t look good for the water district. We’ll have to address some financial issues at our selectman meeting on Thursday.”

The Village Ridge project – create a new housing center with 40 homes on 30 acres – began after the town center along routes 108 and 140 flooded in 2003, destroying dozens of homes. The town bought the land and cleared it, but when it came time to finance the water and sewer lines, voters balked three times after initially giving their OK.