CONSTRUCTION on several pump stations that will ultimately be able to move two megalitres a day from Scone to Murrurundi is due to start next month.
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Work on a 40-kilometre pipeline will follow the station construction.
Upper Hunter Shire Council said contractor Leed Engineering and Construction estimates about 600 metres of pipeline can be laid a day by two teams which will start in Scone and Wingen and work towards Murrurundi.
The underground pipeline is expected to cost $14.2 million and is funded largely by a $13 million state government grant.
The council is footing the remainder of the bill.
The pipeline is due for completion in mid-2020, with work on a larger reservoir at Murrurundi expected to be built afterwards.
Drinking water reticulation and reservoirs will also be possible at Blandford, Parkville and Wingen in the future due to the pipeline design.