A small Panhandle town has caught the attention of lawmakers in Tallahassee.

Late last week, the Florida Legislature approved next year's budget and it includes nearly $700,000 dollars for a new Jacob water system:

Jacob residents say they never get used to the rusty, red spots in the city water system. Jacob is a small community of several hundred residents nestled between Marianna and Graceville.

The city's pump is blamed for bringing up too much iron from the aquifer. The Florida Legislature has allocated $675,000 dollars to start the process of putting in a new system:

Director Charlie Martin of Jacob Water Works said, "Through this state grant, we can test and figure out the best available place for a new well; dig a little shallower where the iron is not as bad in the Florida aquifer."

Several residents say the bad water creates problems when washing clothes. It's also considered "unhealthy".

Jacob Resident Eula Johnson says the water, "Stains the commode, the bath tub. Drinking this kind of water; what is it doing to our stomachs, our bodies?"

According to Jacob residents it’s cloudy and it stains clothes during washes.

Jacob City Employee Alfonso White said, "Some people drink it, but others use bottled water. There is a lot of concern about it."

Local and state officials will continue to monitor the output of the Jacob water pump, which serves around 100 households.

The total cost of putting in a new water system in Jacob is expected to cost around $1 million dollars.