Nearly two miles of new pipes have been laid in an operation that also saw a tunnel bored under an important railway line to upgrade the town's water supply.
Georgina Reid, Scottish Water's corporate affairs regional manager said: "Oban is known as the 'Gateway to the Isles' and during the tourist season can see its population increase threefold.
"A robust and reliable water supply is therefore essential, and the team have worked incredibly hard in often challenging circumstances and conditions to deliver on schedule.
"We are investing many millions of pounds across the country to improve the resilience and lifespan of our assets and infrastructure to meet the challenge of climate change.
"The new £29million water treatment works in Oban were completed just three years ago and together these projects will ensure that many thousands of people enjoy clear, fresh drinking water for many years to come."
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The first phase began in November 2020 with new pipework installed between Colonsay Terrace and the junction of McCaig Road and the A816.
There followed a technically challenging and delicate operation to tunnel beneath an important railway line from the edge of Oban High School's all weather pitches to the car park at Shuna Terrace.
This was accomplished with round-the-clock drilling with no impact on train services or local customers.
The final phase has seen an additional 500 metres of new pipes installed right up to the Tullich water treatment works.
The project was delivered on behalf of Scottish Water by Caledonia Water Alliance (CWA).
CWA site manager Mark Batten said: "It has been a pleasure delivering this project in Oban.
"We have had some challenges to overcome including drilling under the railway but looking back the only thing I would change is the weather.
"Local residents have been a pleasure to work with and I would like to thank them for their patience.
"It has also been hugely rewarding to be able to involve pupils from the High School from day one, sharing knowledge on the proposals and project progress."
Oban High School Head Teacher Peter Bain said: "I would really like to thank everyone involved in the project for working so closely in partnership with the school.
"When faced with such a mammoth operation on your doorstep there is always a worry about what will be involved or what will be left behind.
"But we need not have been concerned as nothing was too much for the team, any problems were quickly dealt with, and the site has been further enhanced following the works undertaken.
"We are also immensely grateful for pupils being given the opportunity to work with professionals from design and engineering, learning about what is involved on a project on this scale.
"It has greatly enhanced their understanding of the vocational subjects they were involved in and better prepared them for the next steps in their careers.
"I would like to thank every member of the team for all of the additional support they have given, their professionalism and dedication."
