UPDATE 10/16/12 @ 11:25 p.m.
FORT GAY, W.Va. (WSAZ) -- A $40,000 grant has been awarded to help deal with the deteriorating sewer system in the town of Fort Gay.

We first reported the story in July when raw sewage was filling ditches along the streets in Fort Gay.

Employees with the Water and Sewer Department say the money is being used to buy new parts for the system, and residents should see major changes by the end of next month.

Town officials also have applied for a $1.2 million grant. It would be enough to fix the entire water system and restore water pressure.

It's what neighbors describe as raw sewage backing up in their homes and pooling in their yards.

The problem is so bad some folks can't even mow the lawn because the grass is so wet with sewage.

Water and Sewer Department Manager Larry Carico says he's doing everything he can to fix the problem, but it's going to be a long road.

“The sewer is the problem right now, and we are working on it,” Carico said. “It's just so expensive right now, and we don't have any money.”

Neighbors like Kayla Daniels aren’t happy about that.

“It's going into our creeks, into our water system,” Daniels said. “It's coming right back in through our sinks and showers, and anything could happen.”

A $40,000 grant from the state is expected to help fix the problem permanently, but the money hasn't been handed over yet.

Until then, they're hoping small repairs can serve as a temporary fix.

About 25 Fort Gay residents attended a town council meeting Tuesday night to voice their opinions about the town’s outdated sewer system.

The problem stems from a broken pump that residents say town council won't fix. Crews from nearby Louisa, Ky., and Lavalette, W.Va., have to come in to pump out Fort Gay's system.

Fort Gay Mayor Rose Devaney says they're doing what they can, but town residents are worried that it's becoming a health issue.

Recently, Fort Gay received a $40,000 grant. Devaney says she assumes that will be used to fix the problem.