A €4 million contract has been agreed for the job which is the third phase of a programme of works which included rehabilition works in Mullinahone, Drangan and Cloneen.
Phase 2 is the water treatment plant for the Fethard area which it's hoped will start shortly.
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Local Councillor Eddie O'Meara says this latest part of the project will be of huge benefit to the people of Fethard.
