It's estimated that around 160 wheelie bins of untreated sewage is being discharged into Rutland Sound, Burtonport per day.
Irish Water has submitted a planning application to Donegal County Council with a view towards building a new sewerage scheme including a wastewater treatment plant for the area.
The new plant would treat effluent from homes and businesses in the area and return the treated water safely to the environment.
Subject to statutory approvals Irish Water expects to commence construction in 2020 and the works will take approximately 14 months to complete.
The benefits the new wastewater treatment plant will bring to Burtonport include improved water quality in the receiving waters; enhanced local amenities and a platform for social and economic development.
The new infrastructure has also been sized to facilitate future population growth.
The proposed scheme will include the provision of a new sewer to connect the existing sewer network to a new wastewater pumping station.
The construction of a new wastewater pumping station and 230m of new rising main to transport untreated wastewater to a new wastewater treatment plant.
The construction of a new wastewater treatment plant which will serve a population equivalent of approximately 300 people adn the connection to the existing outfall pipe to safely discharge treated wastewater to Rutland Sound.