Irish Water and Donegal County Council today marked the start of construction on the €4 million investment in a new water treatment plant at Owenteskna.
It will benefit almost 4,000 consumers in the South West Donegal area.
The sod was turned by David McLoone, of Irish Water, and Donegal Minister of State, Joe McHugh.
When completed the new plant will serve those west of Killybegs, including Kilcar, Carrick and Glencolmcille.
The contract was awarded in November last year to Coffey Water Limited, who will carry out the works on the behalf of Irish Water.
Work has started on the project and is expected to be completed by the end of this year.
It forms part of the major investment of €73 million committed by Irish Water to water supply projects in County Donegal.