Meters would also encourage people to make home repairs to leaky faucets and running toilets, the supervisor noted, which would conserve water.
Dedrick said the meters would not cost the town any money and, in fact, would save money.
The meters would be read electronically and would interface with the town's computerized billing system. The meters would also alert the town water department to any undetected leaks in the system.
Dedrick said the award is considered a "green grant."
"The intent of the program is to conserve 10-30 percent water," the supervisor said. "The feeling is that it'll not only save on water consumption, but there will be fewer chemicals used in treating water and less wastewater at the sewage treatment plant."
The supervisor hopes the town board will accept the grant following the public hearing.
"The town board is looking for public input, but this is a fairest way to go," he said. "This is a chance that probably won't happen again in our lifetime. It would cost a fortune if residents had to pay for these meters."