Irish Water has confirmed the upgrade of the reservoir at Rockmount near Miltown Malbay will go to tender in early January.
The group water network in the area has experienced frequent disruption in recent years, leading to outages in the town for long periods.
The utility has also confirmed that ongoing works to replace the old watermain from Miltown Malbay to Mullagh will be completed in early 2021.
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Clare Independent TD Michael McNamara says the news will provide a boost to both businesses and residents in the area.
