Fall River Water Users District Rural Water System Act of 1996

Fall River Water Users District Rural Water System Act of 1996 - Authorizes the Secretary of the Interior to make grants for the construction and operation of the Fall River Water Users District Rural Water System, Inc. Prohibits the obligation of System construction funds until: (1) Federal environmental compliance requirements have been met; (2) a final System engineering report has been prepared and submitted to the Congress for at least a 90-day period; and (3) a water conservation program has been developed and implemented.

Requires the water conservation program to be designed to ensure that System water users will use the best practicable technology and management techniques to conserve water use.

Requires the mitigation of fish and wildlife losses during System construction and operation.

Directs the Western Area Power Administration, to make available, from power produced under the Pick-Sloan Missouri River Basin Program, the capacity and energy required to meet the pumping and incidental operational requirements of the System from May 1 to October 31 of each year. Provides power use conditions.

States that this Act does not limit: (1) the authorization for water projects in South Dakota under any law; or (2) current water rights.

Provides the Federal share (80 percent) of System costs.

Authorizes the Secretary to allow the Bureau of Reclamation to provide construction oversight to a specified service area within the System, limiting oversight costs.

Authorizes appropriations.