The provincial government is contributing over $194,000 from the small communities fund for the installation of a water treatment system and to construct a chlorination building.
The federal government will contribute up to $114,000 to the project, while the municipal share will be approximately $34,000.
The province is also providing over $69,000 to upgrade the sewage pumping station in the community. The federal contribution will be approximately $40,000 and the town will contribute the remaining cost of over $12,000.
Premier Dwight Ball and Advanced Education, Skills and Labour Minister Al Hawkins, the MHA for Grand Falls-Buchans, were on hand in Millertown for the announcement.