Water and sewerage infrastructure for the first stage of the Warralily estate at Armstrong Creek is on schedule.
Barwon Water Managing Director Michael Malouf said the infrastructure would be delivered in line with developer-agreed timeframes.
"Work is progressing well and services will be available when construction of the development's first homes begins in early 2012," Mr Malouf said.
The Boundary Road water main, which will be the primary drinking water source for the new development, has been fully installed.
The project has involved installation of more than 4.5km of pipeline along Boundary Road.
Construction of the Charlemont Road water main has commenced and is expected to be completed in December. This is a 1.7km pipeline that will transfer drinking water to the Warralily development.
The Lake Road sewer infrastructure is also being installed. This involves constructing a new pump station and pipeline. Work is scheduled for completion in early 2012.
Construction of the Mount Duneed recycled water tank has started and is expected to be completed by the middle of next year.
The tank is a key component of the recycled water scheme to Armstrong Creek. It will store up to 12 million litres of recycled water.
A pipeline to deliver recycled water plant to the new tank from Black Rock will be started early next year. The pipeline will be constructed along road reserves and through private property.
Barwon Water will invest more than $150 million in water, sewerage and recycled water services at Armstrong Creek.