The project involves installing a new storage tank and pump kiosk at the existing water treatment works in Pierowall, Westray.
Work will begin on Monday, 17 July and take around 12 months to complete.
Scottish Water's Regional Community Manager for Orkney, Gavin Steel, said: "By providing increased storage capacity on the island, this investment will significantly improve the resilience of Westray's water supply for years to come.
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"All of the planned work will take place within the existing site boundary at our water treatment works by Loch Saintear, just south of Pierowall. We will work with our contractor to keep any disruption caused by construction traffic accessing the site to a minimum.
"We would like to thank our customers in Westray for their understanding while Scottish Water and ESD work to deliver this important new infrastructure for the island."
(LM/MH)
