In the United States population increases and economic growth are imposing ever-increasing demands on limited water resources. It is critical that the demand for food is met, and that precious water resources are protected for the agricultural economy to be robust and growing. Protecting and restoring surface and ground water resources for drinking and other uses is a major challenge while maintaining the increasing demand for higher crop yields and increased meat production through confined animal feeding operations (CAFOs). The USDA and EPA recognize that CAFOs, if not managed responsibly, can negatively impact human health and the environment (USDA/EPA, 1999). This is particularly important for nitrate and nitrite contamination resulting from agricultural operations that are contaminating groundwater supplies for drinking water in rural community well systems. Micronic Technologies innovative water treatment system, MicroDesal TM, has treated drinking water and wastewater significantly reducing pollutants including heavy metals, which are found in animal feed, as well as nutrients such as nitrates and nitrites and phosphorus. This new technology also effectively removes bacteria and other toxic contaminants. The removal of nitrates and nitrites is critical for the agricultural community, as the EPA has identified these as major pollutants for a number of the nations major watersheds such as Chesapeake Bay, Great Lakes, Gulf of Mexico and Mississippi River watersheds (EPA, 2013). The application of this technology in agricultural operations could benefit the farm communitys challenge in finding cost-effective solutions to protect and restore the water resources on which they depend. In Phase I of this program Micronic Technologies MicroDesal TM demonstrated the capability to significantly reduce nitrate and nitrite levels from eight selected nitrate and nitrite contaminated wells in central and southern Delaware using its bench prototype (2.1) with a capacity of 25 gallons per day (GPD). Water samples were collected, processed, and evaluated for the summer, fall and winter seasons at each well. The results of the treated water achieved reductions of >95% of the amount of nitrates and nitrites substantially below EPA drinking water standards. The purpose of the Phase II project is to increase the throughput capacity of the bench prototype, increase efficiencies and establish an ROI. Micronic will customize, engineer, build and test a field pilot with a capacity of 1500 GPD. Micronic has partnered with Tidewater Utilities, Inc. to install the 1500 GPD field pilot system into their rural community drinking water well at Laurel, Delaware known to have levels of nitrates above EPA drinking water standards. Other Phase II partners include the Delaware Office of Water and the Delaware Environmental and Natural Resources Enforcement Agency. Micronic Technologies new flow bench will be used to evaluate scalability of the current system and optimize system components for final configuration. Tidewater Utilities will work with Micronic to develop a detailed plan for integrating the field pilot into the Laurel, DE community well. Testing will be conducted for a period of three to four months followed by an in-depth performance analysis; lessons learned will facilitate the construction of a commercialized unit. Phase II also includes development of a detailed commercialization plan that will lead to sales and manufacturing. A principal market will be rural community wells with contaminant levels exceeding EPA drinking water standards. Other markets in rural areas include treatment of hydraulic tracking water, acid mine drainage and landfill leachate all with negative environmental impacts and disposal issues. Micronic has identified large markets for 1500, 5000, 15,000 and 150,000 GPD units.