Residents in Lanark Township are frustrated after the town was refused federal and provincial funding to fix water and sewer problems for the third time.

"We can't figure it out. You come up with a whole bunch of things in your mind -- maybe we're too small, maybe we're not important," Lanark Highlands Mayor Bob Fletcher told CTV Ottawa.

For decades, the village has experienced water and sewer problems. Currently, 30 per cent of its wells are contaminated with E. coli.

Although Fletcher has tried to identify reasons for getting overlooked, he said he consistently comes up short.

"You know, there's a lot of different places in Canada that are getting these services -- right next door to us in Mississippi Mills. And for some reason, we're being jumped over," he said.

Now, the municipality is putting together another application for government assistance. It estimates a new water and sewer system for the township will cost $28.5 million.