Irish Water say that a planning application for the proposed Kilcummin Sewerage Scheme will be submitted before the end of the year.
It has confirmed that it is progressing with studies that are necessary as part of a planning application for the scheme.
The proposed project will involve the construction of approximately 8.5km of new foul sewers and a pumping station.
The new network will be connected to the existing Killarney town sewer system and wastewater treatment plant.
According to Irish Water the project will ensure that wastewater from Kilcummin is treated and discharged in compliance with the appropriate national and European standards.
The annoucement has been welcomed by Deputies John Brassil, Michael Healy Rae and Danny Healy Rae.