Work on a new water treatment plant at Lough Talt in South Sligo is expected to start in September.
It will take 12 to 14 months to complete.
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For some time now, almost 13,000 people in the area have been on a boil water notice since cryptosporidium was discovered in the supply
The Boil Water Notice being reissued last January after it only having been lifted in October 2018.
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Irish Water says its sole focus is to find a solution which will enable the boil water notice to be lifted as quickly as possible.
Fine Gael Councillor Martin Connolly says news that work will be starting soon is welcome.
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