According to Mayor Larry Smith, the city is getting a $1.255-million grant for the work.
The federal funding will pay for extending the sewer service to the downtown area, which Smith says will make a huge difference for the city.
"We have 10,000 cars a day pass here and a business could do well here, but the problem was they couldn't start a business here because they didn't have a way to get rid of their sewage, their waste," he says.
Mayor Smith also says this grant will serve as the major milestone for the future growth and progress of downtown.
"The City of Cave Springs is now open for business," he says.
The city has been working for more than 20 months to get this federal grant.
Mayor Smith thanks City Council member Mary Ann Winters, State Representative Tim Summers, Director of the Arkansas Natural Resources Commission Randy Young, Cassie Elliot with Visionary Milestones, and Daniel Barnes with McClelland Engineering, for their help in securing the funding.