Work to construct a reservoir in Cheddar will begin by 2029 after the government promised £84m in funding, a water company boss has confirmed.
Susan Davy, head of South West Water, says it is still in the planning stages of constructing the reservoir alongside an existing one at Cheddar.
Known as Cheddar 2, the site could provide drinking water for 40,000 homes.
Water minister Emma Hardy, who recently met Ms Davy at the site, said the reservoir would help to make sure the area did not run out of water in 10 years, part of a wider £500m investment in Somerset.
Ms Hardy added the government was making a “record investment” into the water industry – providing more than £100bn over the next five years.
She said: “It brings jobs into the local area as well and I’m really pleased to be coming here to support it and find out more.”
The reservoir plans were first proposed by then-owner Bristol Water in 2014, but the water watchdog Ofwat said it had “significant concerns” over whether a second Cheddar reservoir would be in the interests of customers.