This draft environmental impact statement was prepared in response to the action of awarding grant funds to the city of Henderson, N.C. for the purpose of developing a wastewater treatment system to service the Greater Henderson area. The project consists of the necessary facilities to process and treat approximately 3.7 million gallons per day of wastewater. Vance, Warren, and Franklin Counties will potentially be affected by the proposed action. Three alternative systems have been selected for final consideration. A single system will be chosen for implementation after the public and agency review of this draft statement.