South Leinster is to benefit from 33 new, latest generation water treatments plants. Some 18 of the new plants which span six counties will be operated by the private sector, the first water treatment plants to be operated by the sector under a design, build and operate (DBO) contract.
The project, known as the South Leinster DBO, is being co-ordinated by Carlow County Council and involves the construction of treatment plants for group water schemes in counties Carlow, Kildare, Kilkenny, Laois, Wexford and Wicklow.
There will also be a further 15 owned by local authorities - 13 of which are in Wicklow.
The Department of the Environment is to put up €8.5 million in initial finance, rising to €27 million over the lifetime of the 20-year DBO contracts.
The Minister for the Environment, Dick Roche, said it was a unique partnership between the local authorities and the 18 group water schemes.
The single-contract system involving multiple schemes - both public and private - and spread across several local authorities, has never been tried in Ireland before, but it is similar to those used routinely in other countries.