ESD and Coffey Construction are building a new tank with a capacity to store up to eight million litres of drinking water.
When complete, the tank will improve the water supply for around 30,000 across Easter Ross, Dingwall and the Black Isle.
Local MP Jamie Stone visited the site of the project near Evanton yesterday, 31 July.
Mr Stone said: "The long period of dry weather this summer is a reminder that, even in the Highlands, water is a precious resource that we all rely on in countless ways.
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"The work currently taking place will help to improve the security of water supply for Easter Ross in the event of any future issues at the Water Treatment Works; or disruption to the local water network.
"At the same time, it is good to hear of the work Scottish Water's operational teams are currently carrying out across the north to maintain supplies and protect the local environment. Despite some recent rainfall, it is still important that we use water wisely to help lochs and reservoirs recover so that supplies can be maintained through the rest of the summer and beyond."
ESD Project Manager Kevin Williamson added: "The work we are delivering reflects a significant investment for one of the key water supply areas in the Highlands, which serves communities right around the Cromarty Firth.
"Once in place, the new storage tank will give Scottish Water improved ability to carry out important maintenance work at the Water Treatment Works, and deal with any short term issues affecting the local water network, without impact on customers' water supply."
The project is expected to be completed in early 2019.
(CM)
