Castlelands Construction, who developed the schemes, footed the bill for the works at Mallow Business Park and 200 homes in Carrowkeal.
Cork County Council has pledged some funding towards the upgrade at Goulds Hill, however, Castlelands developer John Barry has been warned the properties and business facilities would be left vacant if his contribution was not made.
Council engineer Pat Walsh said the authority could not afford to carry out the works.
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The new water supply will also support a medical centre under development at Goulds Hill.
"This is one project we would not have been able to proceed with if the developer had not provided the funding," said Mr Walsh.
A two month road closure will be required to facilitate the works at Gortnagreice to Carrowkeel.
A reservoir will then have to be built on the site in Goulds Hill. Works are expected to be complete by this Autumn.
Meanwhile, Mr Walsh has raised concerns over that an inadequate water supply in the town is halting the development of houses in Ballyviniter.
Local authority officials are still awaiting for €8.5m to provide a new water supply from Box Cross into the town.
Mr Walsh stressed that work is unlikely to start this year.
When completed, the new water supply for the town is likely to cost €20m. Work will include the upgrading of pipes in the north side of the town, which are expected to greatly improve the water supply.
(PR/JM)
