The firm is working on behalf of Uisce Éireann and the work is expected to commence next week.
The project, which is taking place along Cathedral Road, will secure the water supply in the area.
The scheme has been prioritised and will be delivered as part of Uisce Éireann's national Leakage Reduction Programme.
Uisce Éireann's Declan Cawley said: "Securing Cavan Town’s water supply remains a priority for Uisce Éireann and it is great to see this work commencing which will reduce the risk of outages from bursts now and into the future. Fewer bursts and less leakage mean a stronger more resilient supply for homes and businesses.
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"This section of water mains was prioritised for investment and replacement by Uisce Éireann due to its age and deteriorating condition, resulting in supply interruptions to homes and businesses. When completed, this project will improve water quality, significantly reduce leakage and provide local residents with a sustainable and more reliable water supply for generations to come. I would like to thank the local community in advance for their patience and cooperation during the works. We know based on previous experiences that the short-term inconvenience will be overshadowed by the long-term benefits."
