It could cost up to $13.7 million to extend the Bennington water system to the homes with private wells that are contaminated with PFOA.
PFOA is contaminant that the Environmental Protection Agency says could cause birth defects as well as cancer and other health issues.
The chemical has been detected in private wells in North Bennington and Bennington and in a municipal water system in Pownal.
The Department of Environmental Conservation received an engineering report this week to find out what it would take to bring the municipal water to the homes with the contaminated wells.
The company Saint-Gobain owned the former Chemfab plant in North Bennington, which is the suspected source of the contamination.
Saint-Gobain has been paying for bottled water and for carbon filter systems, but the company has not committed to paying for the water line extensions.
The 41-page report lays out a plan to extend the Bennington water system, and the water will be available to both homes with contaminated water, as well as to those with private wells who might want to hook on to the municipal system.
The report on the Bennington water system only covers a portion of the 227 wells that are contaminated with PFOA above Vermont's advisory level of 20 parts per trillion.
The Department of Environmental Conservation expects a second report on the North Bennington water system which will serve most of the remaining homes.
Some remote homes will not be served by the water line extensions.