Pennsylvania American Water will begin construction this fall to deliver public water to 350 households in Fairview Township.
The project will add a 6.4-mile waterline extension in the township, where a number of wells have been contaminated by malfunctioning on-lot septic systems, said company spokesman Terry Maenza.
Though a specific start date hasn't been announced, work is expected to start this fall and be complete by the end of next year, he said.
The $5 million project is funded by a loan from the Pennsylvania Infrastructure Investment Authority (PennVest).
The financing enables Pennsylvania American Water to extend water mains to residents living without adequate access to service, said company president Kathy Pape.
"When completed, the project will provide these families with more reliable service, better quality water and improved fire protection," she said.
PennVest on Tuesday announced the York County project among $82 million worth of drinking water and wastewater projects throughout 11 counties in Pennsylvania.
The authority is largely funded by the U.S. Environmental Protection Agency, state bonds and Marcellus Shale revenue, said authority spokesman Paul Marchetti.
PennVest determines which projects to fund based on which ones most benefit public health, the environment and economic development, he said.
"We go as far as the money will take us," Marchetti said.