St John's Special School has secured funding for a new extension, which will allow two new classrooms to be provided.
The school previously had to utilise teaching and spare rooms in the school next door due to a lack of space.
Funding was earmarked for the project at an earlier stage but fell short of what the project would cost.
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Welcoming the progress, local Fine Gael Senator Paudie Coffey said: "This school caters for children with complex needs and disabilities and has a huge catchment area all over Waterford, into East Cork and parts of Tipperary.
"Over the last couple of years as their numbers have continued to grow, they have had to establish a waiting list as they cannot accommodate the numbers who need to enrol.
"This was a huge disadvantage to local children who had no other local special school to go to.
"I have been in constant contact with my colleague the Minister for Education Joe McHugh highlighting the issue and I'm delighted that appropriate funding has finally been granted.
"This will make a huge difference to pupils and staff at the school and help to ensure those on waiting lists are catered for."
(CM/MH)
