Irish Water and Roscommon County Council are moving forward with the plans, which will allow the town to grow further by supporting housing and commercial development.
Cathaoirleach of Roscommon County Council Joe Murphy said: "Roscommon has a lot to offer. The past two years have allowed people to take a step back, slow down and experience remote working and it's great to see people moving back to the town.
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"It's fantastic to see investment of this scale; the scheme will be hugely beneficial for the entire county. The project has been organised very well and the works are being carried out with very little disruption."
Housing Minister Darragh O'Brien turned the official sod on the project, voicing his delight at the scheme's scope to support economic, social and commercial development in Roscommon.
Explaining more about the scheme, Irish Water's Wastewater Portfolio Delivery Manager, Michael Tinsley added: "Irish Water is committed to continuously upgrading and developing critical infrastructure to support the growth needed in housing and across our economy, while protecting the environment and safeguarding water supplies. Together with our partners Roscommon County Council, Tobin Consulting Engineers and GMC Utilities Group, we are excited to deliver this project which will benefit the entire region when it’s completed in 2023."
