TasWater has received approval from its regulators to deliver treated water to the town of Pioneer.
Acting general manager corporate and community relations Ruth Dowty said the infrastructure would take about three years to install.
"The TasWater Capital Delivery Office is now working on bringing this project to fruition," she said.
"The expected completion date of the project is not yet determined. However, it is likely to take up to three years to construct the pipeline."
She said TasWater was conducting tank water quality tests every three months "as part of our ongoing commitment to working with residents".
Residents of Pioneer, in North-East Tasmania, were issued with rainwater tanks when it was revealed in 2012 the drinking supply was contaminated with lead.
Last year it was revealed some of the rainwater tanks also contained lead and other contaminants due to lead-based paint on the rooftops and guttering.
TasWater chief executive Mike Brewster announced in December that a treated water supply would be delivered to the town, pending the support of the Dorset Council and regulatory approval. Both of those conditions have now been met.
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