Dauphin City Council is expected to approve a tender for work on their lagoon at their next meeting.
Mayor Dave Bosiak expects work to begin shortly, adding it is a major project that will take much of the year to complete.
"Once it is completed, we are not adding any cells or doing anything in terms of making the lagoon larger. We are completely updating the way that the sewage is processed, and that there will be a continual discharge capability once the lagoon is upgraded."
Currently, the city lagoon holds sewage and only releases it twice a year.
Bosiak says the continual drainage once the work is completed will increase capacity in the lagoon by two to three times its current levels.