Letterkenny Town Council has been told that plans to link Bonagee into the new pumping station and sewage treatment works outside the town could allow more homes and businesses to be connected in the future.
Investigation works will be going to tender shortly as part of a five million euro programme.
The issue was raised by Cllr Jim Lynch - This is the response he received from officials.
"As part of the national "Water Services Investment Programme" approval to tender sewers of estimated value €5.1M has been received from the DECLG.
Included within these works is a sewer on the main N14 serving part of the Bonagee area. The works proposed will service a substantial proportion of existing non-domestic consumers in the Bonagee area and create the potential for the future servicing of a wider area of domestic and non-domestic properties.
Planning and design is ongoing and a site investigation contract will be tendered shortly".