The £840,000 investment will be carried out by contractors Mackenzie Construction for the upgrade of Castlegreen waste water pumping station in the Castlegreen area of the town.
The work will include the refurbishment of four Archimedean screw pumps and the replacement of screens, and is expected to be completed in late 2012.
Scottish Water said the upgrade works will help ensure the facility continues to comply with waste water quality regulations.
Scottish Water west area wastewater assets manager Gary Caig said the capital maintenance project at Castlegreen waste water pumping station will ensure the company continues to help protect and improve the natural environment in the area.
"By refurbishing and replacing existing equipment there we will ensure we continue to meet stringent government regulations and provide a quality service to the community now and for many years to come," Caig said.
Scottish Water construction manager Steven McConnachie said, "All of the work in this project will be contained the site of the pumping station and there should be no disruption to normal service."
