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The state's Division of Water Resources in recent action has authorized loans of $1.2 million to small water companies in Utah and given tentative approval for another $1.8 million in water-project underwriting.

Six companies or municipalities have received funding from the division's board of directors:- The Deseret Irrigation Co. of Millard County ($135,000), for irrigation-canal lining.

- The city of Payson in Utah County ($375,000), to extend and upgrade its culinary water system.

- The city of Randolph in Rich County ($80,000), for culinary system improvements.

- The town of Clarkston in Cache County ($196,000), for culinary system improvements.

- Torrey town in Wayne County ($310,000), for system additions.

- The Boulder Irrigation and Water Development Co. of Garfield County ($84,000), for improvements to Spectacle Lake Dam.

Funding for these projects will be repaid annually over periods ranging from nine to 18 years.

Those receiving tentative authorization pending a number of stipulations:

- The city of Riverton ($1.58 million), to expand services through $2.1 million in improvements that include drilling and equipping a new well and building a 3-million-gallon concrete storage tank and almost 3 miles of pipeline. The city will repay the money in five years.

- The Strawberry High Line Canal Co. of Utah County ($141,000), to help pay for replacing a ditch-irrigation system serving 450 acres in the West Mountain area with a pressurized irrigation system. The funds will be repaid annually at $9,600 over 20 years. The company has also been loaned $90,000 to replace an irrigation ditch system in the Spring Lake area with a pressurized secondary irrigation system. The company will repay the state with 25 annual payments of $5,300.

Loan applications were accepted for feasibility study from three groups: The Irrigation Co. of the West Fork of Grouse Creek ($175,000), the Holladay Water Co. of Salt Lake County ($1.7 million) and the Ivins Irrigation Co. of Washington Co. ($350,000).