Rural Water and Waste Disposal Program Improvement Act of 1983

Rural Water and Waste Disposal Program Improvement Act of 1983 - Amends the Consolidated Farm and Rural Development Act to require the Secretary of Agriculture to provide for a graduated scale of rural water and waste disposal grants based on income and population levels. Restricts the maximum rate to projects in communities with populations of 1500 or less and a median income level below 80 percent of the statewide nonmetropolitan median income level.

Directs the Secretary to establish a project selection system based on income, population, and health hazards due to lack of potable water or inadequate waste disposal.

Authorizes predevelopment grants and technical assistance.

Revises the standard for five-percent loans from one based on the Federal poverty line to one based on the statewide nonmetropolitan median income level. Establishes a seven- percent loan for communities with median incomes of between 80 and 100 percent of such statewide income level.