CANTON — The Water District has received a state grant that will pay 75 percent of the $141,500 cost of improving water quality, it was announced at a hearing Thursday night.

The district is also applying for a $35,000 Community Development Block Grant to help with the project.

Debbie and Donald Hutchins of the Water District said byproducts from chlorination have developed because water has sat in the supply well too long. Also, the filtering sand should be replaced every 10 to 12 years, but has not been for 15. The cost of the sand is $10,000.

After the hearing, selectmen discussed the annual town meeting elections in March. Two selectmen will be elected for three-year terms. Nomination papers must be in the Town Office by Feb. 14. The terms of Donna Hebert and Scotty Kilbreth expire this year.

The town is switching to a July 1-June 30 fiscal year so voters will adopt a six-month budget in March. Another town meeting will be held in August to set a budget for the fiscal year July 1, 2011, to June 30, 2012.

Selectman Jackie Conant reported the town had received $15,000 from the Lakeshore Association to help pay for the new dam for Lake Anasagunticook.