NI Water stated that work is scheduled for October and will continue until Summer 2023.
Said the Foyle MLA: “Pleased to see this important investment for water infrastructure in Creggan which will include a replacement of the existing pumping station.
“The ageing water infrastructure in this area has been crying out for an upgrade for decades.
“This vital scheme will enhance the security of water supply for customers for years to come and will make for a more reliable service, to accommodate growing demand well into the future.
“This enhanced security will prove particularly important of the winter months and other unplanned events.
“I’ve received assurances from NI Water that they will do all they can to minimise disruption while completing these essential works.”
Mr Durkan added: “The SDLP has been raising issues around this required investment in this infrastructure at Creggan and its reservoir for some time.
“So, I’m pleased to finally see some movement in that regard.
“I have and will continue to push the Minister for Infrastructure for remediation requirements and safety improvements at Creggan reservoir.”