Irish Water say the Kilrush Sewerage Scheme will include room for population growth in the West Clare town when completed.
The project, being delivered by EPS Group on behalf of Irish Water, has recently commenced and is expected to take approximately 18 months to finish.
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The aim of the development is to construct a Wastewater Treatment Plant in Kilrush to end the discharge of raw sewage into the Shannon Estuary.
Irish Water spokesperson Esther White says while there are approximatly 5,700 people living in Kilrush and surrounding areas, the completed works will be able to cater for around 6,700, leaving room for population growth in the town.