The project will increase the capacity of the sewer network to better protect properties and streets from external and internal flooding.
To date 70 of the 130 metres of pipes to be installed have been laid in the town's Church Street.
The upsized pipes and new underground storm water storage tank being built in the nearby public car park will give the local network more than ten times the storage capacity it had before.
Work has begun laying the foundations of the storage tank which will be seven metres deep and 10.5 metres diameter and a total of 300 cubic metres – enough to store more than 300,000 litres of surface water at times of heavy rainfall, which is happening more often due to climate change.
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Work on the £3.2 million investment was due to start in March but was postponed due to the Covid-19 lockdown and resumed in autumn. It is due to be completed in late spring.
Scott Fraser, Communities Manager at Scottish Water, said: "Sewer flooding causes a great deal of distress for householders and it also has a detrimental effect on the local environment. This work should significantly reduce the risk of future sewer flooding in Eyemouth."
A small number of properties in the town have experienced internal flooding at times of heavy rainfall, which can overwhelm the sewer network.
The project is being delivered by Scottish Water's alliance partner amey Black& Veatch (aBV). Site manager Max Turnbull, of aBV, said: "We are a third of the way through the work and when we can we plan opening up parts of the road we have completed to let people living in this busy street get better access to their homes.
"We are working very near to many homes in this confined street and very much appreciate peoples' patience and understanding while we carry out this essential work."
