The project will run across Offaly and Laois, and is now in its procurement and tendering process.
Plans for a major pipeline which will be laid across the Midlands have been given the green light to progress to the next stage.
The Water Supply Project Eastern and Midlands Region project will take water from the Lower River Shannon and be piped through Offaly, Laois, Tipperary, and Kildare all the way to Dublin.
The project is expected to cost the State anything up €6 billion and has been met with vocal opposition from some affected farmers and landowners.
However the two largest farmers associations, IFA and the ICMSA, hammered out a deal with Uisce Eireann last September.
Today, the semi-state body is confirming the plans have been approved under the government's infrastructure guidelines to progress to the next stage.
That means moving onto the procurement and tendering process.
The development will provide Dublin, Meath, Kildare and Wicklow with a a new water supply, with the capacity for future offtakes, to serve communities along the route in Offaly, Westmeath, and Tipperary.
Uisce Eireann says it hopes to begin construction on the pipeline by 2028, creating more than 1,000 jobs during that phase.
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