ODOUR around Launceston's Ti Tree Bend sewage treatment plant is hoped to be reduced by next year through a $1.1 million project announced yesterday by TasWater.
Iron salt is to be added to the sewage treatment process to reduce the build- up of odorous gas.
TasWater chief executive Mike Brewster said construction would start in the next few weeks for completion in February.
"This is just the first stage of works," he said.
"It will not completely eradicate the odours and the necessity for future works will be considered following the implementation and assessment of the chemical dosing unit."
Mr Brewster said the work was both in response to odour complaints and to satisfy the Environmental Protection Authority and Health and Human Services Department.
He said the plant upgrade formed part of the water corporation's $100million project list for this financial year.
About $40 million of that was to be spent on Northern projects.
TasWater has awarded the $1.1 million contract to Paul Zanetto Civil Contracting, which worked on the corporation's Lilydale pipeline project.
Owner Paul Zanetto said his business relied on TasWater's business.
"If it wasn't for the contracts being awarded by TasWater, I for one would be closing my doors, which would take away the income of 22 families," said Mr Zanetto.