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The scheme is being carried out for Scottish Water and will take place near an underpass on the A75 which has been regularly been affected by flooding.
Features include upgrading the sewer and increasing its capacity aims to prevent the flooding which has affected pedestrians using the underpass which links Central Avenue to Glasgow Road near the railway station.
Scott Fraser, Scottish Water's corporate affairs regional manager, said: "We are pleased to be starting work and bring about a solution to the regular flooding of a vital underpass, which will remain open whilst we are working.
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"We would like to thank the local community and our stakeholders for their effort and patience in taking this project to fruition."
Elsewhere, Scottish Water has issued new proposals to tackle flooding in Annan.
Residents in Rose Street, Charles Street, Greenlea road and Newington Park have been presented with a solution to solve the problem.
Mr Fraser said: "This is a significant scheme which we hope will go some way to rectifying the flooding the community has faced in recent years.
"After detailed discussions with Dumfries & Galloway Council, community councils and stakeholder groups we have come up with the following proposals which include the construction of a large underground storage tank in the south western part of Newington Park, the upsizing of the sewers within the park, upsizing sewers on Rose Street and Charles Street and some sewer upsizing on Greenlea Road to transfer storm flows away from the area.
"We are not able to commit to any timescales for this project at this time but would like to assure the community that we will keep them informed throughout as we progress. We do intend to hold a drop-in style meeting which the local community once we have enough detail to share. We will also be continuing to work closely with Dumfries and Galloway Council to ensure this solution is integrated with their Surface Water Management Plan."
(LM)
