Rural Drinking Water Assistance Act

Rural Drinking Water Assistance Act - Declares that it is the purpose of this Act to direct the Secretary of Agriculture and the Surgeon General of the United States, in cooperation with the Environmental Protection Agency, to provide for the improved health and welfare of rural residents of the United States to the maximum extent possible by encouraging the efforts of such residents to develop water supply systems which would dispense hygienic drinking water and water for other human needs, with the ultimate goal being to make such water readily available at a reasonable cost to every resident of the United States.

Provides that the Secretary of Agriculture in cooperation with the Environmental Protection Agency's Office of Water Supply, shall conduct a survey, to be completed no later than one year after the date of the enactment of this Act, of rural drinking water assistance areas.

Establishes the Rural Water Council which shall consist of the Secretary, who shall be chairman, the Surgeon General, the Administrator of the Environmental Protection Agency, the Secretary of Housing and Urban Development, and nine additional members appointed without regard to civil service laws by the President by and with the advice and consent of the Senate.

Sets forth the functions of the Council.

Requires the Surgeon General to continuously review the rural water supply projects assisted under this Act to determine whether they are so constructed and operated as to comply with public health drinking water standards established by the Administrator of the Environmental Protection Agency.

Provides that no further assistance shall be given under this Act to any recipient of assistance while such recipient is determined by the Surgeon General to be in noncompliance with the public health drinking water standards established by the Administrator.

Authorizes the Secretary to make grants for research relating to the provision of adequate water quantity and quality and the utilization of improved methods of establishing rural water suppy systems.

Provides that the Secretary shall make available to rural residents any information resulting from any research authorized or assisted under this Act.

Authorizes the Secretary to make grants not to exceed an aggregate sum of $100,000,000 and to make or insure loans not to exceed an aggregate sum of $100,000,000 in any fiscal year to associations, including corporations, not operating for profit, and public and quasi-public agencies, for the establishment of rural water supply projects which provide water for drinking and other human needs and for the treatment of the waste water thus generated in such manner as will not threaten human health or the environment.

Authorizes the Secretary to make grants not to exceed an aggregate sum of $20,000,000 in any fiscal year to support the organization of rural water supply and waste and water treatment associations, if he determines, that such grant will facilitate the organization of a rural water supply association to develop a project to implement the purposes of this Act.