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Council 3 Waters group manager Tom Dyer, speaking at a Mosgiel-Taieri Community Board meeting last week, said the council identified a swale in Reid Ave as being ''a significant source of floodwater that causes damage to both the wastewater network and houses around Gordon Rd and south towards Carlyle Rd''.
At the meeting, board member Martin Dillon said during the flood in Mosgiel on February 1 the car park at Mosgiel Library flooded.
Mr Dyer said the car park flooded because a pump station in Reid Ave failed to move the 77mm of rain which fell in Mosgiel quickly enough.
''The pump station upgrade will deal with that.''
The capacity of two pump stations in Mosgiel would also be increased.
The Reid Ave station upgrade would increase its capacity about 3.5 times and an upgrade of the station in Carlyle Rd would boost its capacity about 2½ times.
The extra size of the upgraded station in Reid Ave could result in a skate ramp having to be moved or alterations to a neighbouring car park, he said.
As the Carlyle Rd station was on the edge of the wastewater treatment plant grounds, the extra size of the upgraded station could be accommodated in the grounds, he said.
The council already has funding set aside for the upgrade work in the 2018-19 financial year.