NATURE OF THE CASE/CAUSE OF ACTION: THE PROPOSED CIVIL ACTION IS BASED UPON A VIOL OF SEC 1414(B) OF THE SDWA, 42 USC SEC 300G-3(B). THE DEF HAS FAILED SINCE 10/77 TO MEET THE MAXIMUM CONTAMINANT LEVEL FOR TURBIDITY STANDARD FOR PUBLIC WATER SUPPLIERS. THIS ACTION IS BEING PROPOSED ONLY AFTER THE DEF REFUSED AN OFFER OF A $378K CONST GRANT BY THE FARMERS HOME ADMIN & A $242K LOAN FOR 40 YRS AT 5% INTEREST BY THE FED HOUS- ING AUTHORITY. THIS COMBINED GRANT/LOAN WOULD HAVE PAID FOR OVER 98% OF THE COST OF THE RECOMMENDED FILTRATION SYSTEM. THUS THE DEF HAS NOT MADE A GOOD FAITH EFFORT TO COMPLY W/THE ACT & REGULATIONS.