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Residents and council weigh future of Potter Hill dam as federal funding stalls

Westerly Town Council · June 1, 2026
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Summary

Public speakers and councilors debated Potter Hill (Pill) Mill dam options including repairs, fish passage, and transferring the site to a state agency after a major federal grant failed to materialize. Council asked staff to pursue formal transfer conversations and possible stakeholder working group.

Community members and councilors used Wednesday's meeting to press the council for a clear strategy on the Potter Hill (sometimes called Pill Mill) dam after federal funding for a larger project appears to be paused.

"The Potter Hill Dam does provide some flood protection for the industrial area and residential areas along Canal Street," said public commenter Pete Ogle, who outlined ecological value of the Pogatuck River wetlands and called for a local working group to study fish passage, recreation and long‑term stewardship.

Councilors discussed three practical tracks: (1) pursue remediation and grant funding if federal dollars return; (2) convene a local multi‑stakeholder working group to recommend phased maintenance and recreational improvements; or (3) offer the dam and the adjacent mill site to an appropriate state agency. Several members urged a formal, written approach. Councilor Petra asked that a legal/formal transfer request be prepared so the town can present the property to state agencies for consideration rather than relying on informal phone calls.

Town staff said a previously announced federal award of roughly $14 million is currently unavailable and the town had not received formal written notice of cancellation; staff will attempt to secure a written agency response. Council members said some combination of a formal transfer offer and continued stakeholder work is warranted. Manager and council asked staff to set up follow‑up discussions with DEM and other state partners and return with proposed next steps.

No formal action transferring property occurred at the meeting; councilors instructed staff to pursue formal outreach and report back.