The Gweedore Sewerage Scheme Demonstration Project is due to commence within the coming weeks.
It is hoped the new sewerage scheme will lead to a reduction on the reliance of septic tanks in the area.
The works will begin with detailed surveys of the drainage systems where Irish Water will map individual property drains and septic tanks in the area.
Once surveys are complete Irish Water will refine the design to enable the utility to be in a position to start works in early 2018.
Irish Water say when complete, the new sewerage scheme will support residential and economic development in the Gweedore area, provide a wastewater network for homes and businesses, protect and improve the water quality in Gweedore Bay as well as local rivers and streams, provide better treatment of wastewater to protect the environment and ensure Gweedore is in compliance with Irish and European regulations.
As part of a proposed Pressure Sewer System, works would include the upgrading of the existing wastewater treatment plant and an Integrated Wetland being constructed downstream of the existing outfall.
The utility says this will reduce untreated wastewater in the environment by having enhanced treatment of wastewater.