The project is expected to recruit dozens of apprentices and graduates from Scotland.
The contract is worth around £560 million over the next six years.
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As the preferred bidder, ESD will oversea the delivery of projects including work on reservoirs, water treatment and pumping stations.
ESD is a joint venture between Galliford Try, MWH Treatment and Black and Veatch.
Douglas Millican, Chief Executive of Scottish Water said: "This is our third alliance appointment and the benefits for communities of Scotland across Scotland will be felt through all of these partnerships."
aBV Alliance, a partnership between Amey and Black and Veatch, was announced as Scottish Waters waste water infrastructure alliance partner.
(LM/CD)
