Officials working on the Tower Road dam and reservoir project in New Brunswick, Canada, expect it to be complete by 2014.
The city of Moncton is undertaking the $30m project, which is expected to provide an additional 16.5 million cubic meters of water to its residents.
Tower Road will replace the Turtle Creek Reservoir, which has faced intermittent droughts over the years.
The project is jointly funded by federal and provincial governments, which provided $9.79m each, reports the Times and Transcript.