The current plant has been operating for almost 70 years and is the main source of drinking water for around 13,000 people living in areas such as Tubbercurry, Ballymote, Ballisodare, Curry, Coolaney and Charlestown.
Earlier this year Irish Water was refused permission to build an interim plant downstream of the current one, to allow upgrade works to be carried out on the existing facility.
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Deputy Scanlon said: "Serious concerns have been expressed both by Irish Water and the EPA that the current level of treatment at Lough Talt may not be sufficient, particularly with regard to cryptosporidium. The decision by An Bord Pleanála to refuse permission for the interim plant was extremely disappointing.
"The fact of the matter is that these upgrade works are needed and the interim plant must be constructed in order for the works to be carried out. While I appreciate that Lough Talt is a designated special area of conservation, there is also an obligation to ensure a clean, safe and secure water supply for the 13,000 people who depend on this water source.
"Irish Water is to re-submit its application for permission and I am urging both Sligo County Council and An Bord Pleanála to consider all of the factors, including the public health issues, involved and ensure that these important works, which affect thousands of residents in Sligo, can proceed."
(CD)
