It's set for a major upgrade which will be completed alongside the gas project.
Ervia – the company that now oversees Ireland's gas and water supply – will combine both the gas and water projects in Nenagh as part of an estimated €10 million investment.
They will provide the gas connection to Arrabawn Co-op by the middle of 2015 following which it will be rolled out to businesses and residents of Nenagh.
At the same time Ervia's subsidiary – Irish Water – will carry out a rehabilitation project in the town to improve water and waste water systems in Nenagh.
Welcoming the news, local TD and Environment Minister, Alan Kelly says it makes sense when you are already digging up roadways to provide gas to upgrade the water infrastructure as well.