Works to upgrade the Waste Water Treatment Plant in Bunmahon are expected to begin next year, meaning month's of community campaigning has paid off.
It follows the recent news that Irish Water has included the facility in its next capital investment plan.
Overcapacity issues in recent years have meant that a significant upgrade is needed to end the discharge of raw sewage into the bay.
Waterford MEP Grace O'Sullivan says the planning will take place next year.
"It'll be well advanced by 2024. Normally a project like this would take about five years, but now because we have the commitment from Irish Water, they're starting in 2023," she said.
The current system, which is over 50 years old and catered for just 120 people, now provides to almost 500 people in the summer months, putting pressure on the system.
50% of Ireland waste water treatment is not up to EU standard and more has to be done.
"That has a problem for public health, it has a problem for the environment and water quality," MEP O'Sullivan said.
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