The work, which will begin next week, on Church Road, is being carried out by Farrans Construction on behalf of Uisce Éireann.
Crews will replace more than 350m of old water mains which are susceptible to regular bursts and high levels of leakage.
Uisce Éireann’s Networks Regional Lead Declan Cawley said: "Securing Bundoran’s water supply is a priority for Uisce Éireann and it is great to see this work commencing which will reduce the risk of outages from bursts now and into the future. Fewer bursts and less leakage will ensure a stronger water supply for homes and businesses in this busy coastal community."
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"Areas of work along Church Road will be limited to short sections to minimise impact on customers. Traffic management in the form of traffic lights will be in place along Church Road to allow the works to be delivered safely and efficiently. Locals can be assured that local and emergency traffic will be accommodated at all times.
"The essential works may involve some short-term water interruptions, but the project team will ensure that customers are given a minimum of 48 hours' notice prior to any planned interruptions.
"We understand that this type of work is inconvenient, and our crews will make every effort to minimise disruption to the local people. These works are essential to ensure Bundoran’s security of supply now and into the future, with the long-term benefits far outweighing any short-term inconvenience. We thank the community for their patience and co-operation."
The work is expected to be complete in August.
