The work is expected to take 20 months to complete.
Fianna Fáil TD for Galway West Éamon Ó Cuív welcomed the news.
Deputy Ó Cuív said: "These works, which will see over 14 kilometres of old cast iron piping in the An Cheathrú Rua area replaced over the next two years, will deliver major improvements in water quality for residents. The number of leaks and breaks will also be greatly reduced leading to a notable improvement in the service.
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"Galway County Council is aiming to ensure that disruption is kept to a minimum and has imposed a carefully constructed traffic management plan for the duration of the scheduled works. These restrictions include limits on lane and road closures as well as constraints on water service disruption."
(CD/LM)
