Reclamation Rural Water Supply Act of 2004 - Authorizes the Secretary of the Interior to undertake a competitive program to plan, design, and construct rural water supply projects in cooperation with non-Federal project entities in States and areas referred to in the Reclamation Act of 1902. Requires that each rural water supply project be performed in cooperation with a qualifying non-Federal project entity.
Directs the Secretary to develop and publish criteria for determining which projects are eligible for participation, considering factors such as whether a project serves rural areas and communities or Indian tribes, shows economic benefits, and is cost-effective and whether and to what extent the local project sponsors can meet certain cost-share and repayment criteria.
Authorizes the Secretary to undertake: (1) appraisal investigations to identify and study opportunities for construction of projects to determine if they meet the criteria; and (2) studies to determine the feasibility of rural water supply systems recommended for study. Limits the Federal cost share of feasibility studies to 50 percent of total study costs, with an exception.
Declares that non-Federal entities must have the capability to pay all operation, maintenance, and replacement costs of the project facilities.
Directs the Secretary to coordinate with existing Federal and State rural water and wastewater programs to determine the most appropriate agency to undertake recommended projects and to otherwise facilitate the most efficient and effective solution to meeting the water needs of the non-Federal project sponsors.