Water Minister Mia Davies said the project would enable 299 residential lots to connect to the central wastewater system and was expected to be completed in August next year.
Infill sewerage allows properties to connect to the wastewater system, which eliminates the need for septic tanks and leach drains and provides social and environmental benefits for the community.
Residential lots bounded by Gretel Drive in the north, Vanessa Road and Merlin Street in the east, Cobblers Street in the south and Nerine Street in the west will receive infill sewerage.
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The project will also include construction of a new wastewater pumping station and 2.1km of wastewater pipeline along Peelwood Parade to transfer wastewater to the Halls Head wastewater treatment plant.
Residents in the infill area will shortly receive information from the Water Corporation.
Ms Davies said the corporation would work closely with residents to minimise construction impacts and traffic management would be in place.
The Water Corporation will also construct 1.9km of pipeline along Peelwood Parade to provide recycled water to the City of Mandurah to irrigate local parks and ovals.
The State Government’s Infill Sewerage Program has allowed more than 93,000 WA households access to the central wastewater system, reducing leach drain run-off to the environment.