The eastern Nebraska town of Bellwood has received $1.6 million in federal funds to build a new water treatment plant to improve its water after two wells were found to have high levels of uranium or arsenic.

The funds are expected to cover the cost of the project, which includes a new plant, a second well and a transmission main that connects to the current well.

Problems with Bellwood's water supply surfaced in 2006 when high levels of uranium were detected in one of the wells. It was taken out of operation. Arsenic was then found in the second well. Arsenic is a relatively common water contaminant that can cause health problems through long-term exposure.

The project isn't expected to be completed until 2014.