The funds will be used to improve and safeguard the water supply within the area.
Last month, work started to construct 9.4km of water mains and it is anticipated that the section between Killylour water treatment works to the Lochenkit plant will be completed by the end of the year. The new pipeline means Lochenkit will be closed down, as water volume and quality will have been increased.
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Nigel Graham-Smith, Asset and Investment Manager at Scottish Water, said: "This is part of Scottish Water's ongoing investment programme to make sure our customers in Dumfries and Galloway enjoy clean, fresh water for many years to come."
It added that it was confident the work would be completed as quickly as possible, with as minimal disruption as possible.
Around 1,500 people are served above the water supply and are from a number of communities in Dumfries and Galloway, including Corsock, Springholm and Edingham Industrial Estate.
(JP/MH)
