Building a new wastewater and supply main to link Kakanui residents to the Oamaru pipeline will start later this month.
Two years ago, the Waitaki District Council agreed to connect the two water supplies in order to provide Kakanui with a water supply that would meet national drinking standards, and council water and wastewater manager Martin Pacey said construction company Downer Ltd had been awarded the tender for the work, valued at about $890,000.
Although the work was estimated to raise Oamaru rates bills by about $7 a year, Oamaru residents have not objected to the proposal.
Mr Pacey said the project was costing about $20,000 more than estimated because the council had chosen to use a larger pipe in order to avoid the need to build a booster pumping station, should water demand grow.
''The $890,000 will be funded by a mix of depreciation, development contribution, reserve funds set out for those purpose and loan.''