HATFIELD — A 25% increase in the sewer rate approved by the Select Board this week will allow Hatfield to pursue a federal grant and low-interest loans to make what could be $10 to $12 million in improvements to the town’s wastewater treatment system.

The board voted 3-0 Tuesday to raise both the sewer and water rates immediately, with the adjustment affecting the bills that will go out in the fall based on meter readings that start this spring.

As a result of the increases, the typical residential sewer and water customer will pay at least $130 more for the services annually.

Chairman Brian Moriarty said he supported the increase because Hatfield should have wastewater treatment and municipal water systems that continue to function well.