Uisce Éireann announced the project in collaboration with Offaly County Council.
150 metres of aged water mains in the midlands are set to be replaced.
New modern pipes will be installed in Drumbane, Birr by Uisce Éireann in partnership with Offaly County Council.
The aim of the project is to create a more reliable water supply and reduce the amount of water lost to leakage.
Works will commence later this month.