The investment will be used to transfer about 275 services to enhance and maintain water quality, water pressure and fire protection.
The Peoria District senior operations manager Chris Johnson said the project will ensure reliable water service as well as provide easier access to water infrastructure.
"The age of the pipes coupled with corrosion and sediment accumulation over the years makes main replacements and transferring services necessary," said Johnson.
"Illinois American Water continues to invest annually in its systems to ensure that local water quality and service continues to be as good as or better than local, state and federal quality standards."
The main replacement program replaces mains where leaks occur, corrosion has caused damage or the size of the pipe is not sufficient.
Upon transferring all service lines to the new water main, the existing main will be disconnected and abandoned in place.
