Water Conservation and Quality Incentives Act - Amends the Federal Water Pollution Control Act to authorize the use of State water pollution control revolving funds for assistance to eligible recipients for construction of water conservation improvements and of water quality improvements or practices. Defines "eligible recipients," for purposes of assistance for water conservation improvements, as specified parties located in a State that has enacted laws that: (1) provide a water user who invests in such an improvement with a right to use water conserved by the improvement; (2) provide authority to reserve minimum flows of streams; and (3) prohibit transactions that adversely affect existing water rights.

Bars the use of water conserved through such improvements for the irrigation of land that has not been previously irrigated.