Funding has been allocated to upgrade the Fenit Waste Water Treatment Plant.
Irish Water representatives announced the funding during the monthly meeting of Kerry County Council.
The need for upgrade works at the Fenit plant was regularly highlighted by Tralee MD councillors, all of whom say this funding is very positive news for the area.
Sinn Féin councillor Deirdre Ferris says Fenit has been hindered in its development both residentially and commercially for years as the existing treatment plant is not fit for purpose.
She is calling for Irish Water to now provide a timeline for this project so it can proceed as a matter of urgency.
Irish Water has also confirmed funding to upgrade the Knightstown Wastewater Treatment Plant.
Minister for Education Norma Foley has welcomed the news.