The 2016-17 pipe renewals, consent renewals, and water safety plans are listed as costing $2,063,000 in the council’s 2015-25 long-term plan.
Council contracts engineer Michael Goldingham said the tendering process for the contract for the first stage of the work — which had a completion date of August 1 — closed on January 17.
The council expected to award the contract the following week.
The work, part of the council’s 10-year, $14,923,500 asset renewal plan would improve water quality, water pressure and safeguard against supply failure.
"Water quality in terms of discoloured water will improve due to the fact old pipes are getting replaced," Mr Goldingham said.
While water quality on South Hill was consistent with other areas in Oamaru, water pipe breaks or extended use of a hydrant could cause discolouration at times and replacement of older pipes would reduce the number of pipe failures.
Further, he said, on "hotter summer days" some South Hill residents now experienced low water pressure.
After the work had been completed, the problems with variability of water pressure would be reduced.
South Hill residents could face "disruption" to their water supply and vehicle access at times while the staged work was under way over at least the next three years, a letter distributed to South Hill residents late last year stated.
Special measures would be put in place for businesses and those with health issues, the letter reads.
"Obviously we know Fenwick School is in the area, pre-schools, businesses also, but none has come forward yet as needing special consideration at this stage," Mr Goldingham said.
However, central South Hill streets would not be affected until later stages of the works programme, scheduled for 2018 and 2019. There would be temporary damage to roads and some roads would face temporary closures for trench construction works where pipes were being renewed down a street.
