The Government's announced the first drawdown from its $3.8 billion Housing Acceleration Fund.
It says $136 million will be invested that will result in capacity for 2000 additional houses in Porirua - and will create up to 250 jobs.
The fund was announced earlier this year as part of the Government's major March housing policy package.
Housing Minister Megan Woods said on Wednesday the first drawdown from the fund was "a key milestone in the Government’s plan to address the housing crisis by increasing supply through large scale projects and speeding up the pace and scale of house building".
“This $136 million investment will be of major significance to the people of Eastern Porirua, delivering crucial upgrades to wastewater infrastructure and the building of a new drinking water reservoir needed to get new housing consented.
“Funding will also be used to address land remediation and development work around Cannons Creek which, together with the water infrastructure, will provide additional capacity for another 2,000 homes on private and Government-owned land.
“This is a win-win investment. We’re addressing decades of under-investment in water infrastructure by replacing crumbling old pipes and unleashing the potential to build thousands of new homes in the process.
“Fixing Eastern Porirua’s water infrastructure at Bothamley Park is another big bonus of this funding. It will reduce raw sewage discharge into local waterways, helping to address the long-term degradation of the harbour, Te Awarua o Porirua.
“This is vitally important for the resilience of the local water network and for Ngati Toa Rangatira because of the harbour’s cultural, historical, and spiritual significance.
“This regeneration project with Porirua City Council and Ngati Toa future proofs essential water services for the majority of the 19,000 existing residents in Eastern Porirua and prepares it for further investment to grow the community,”Woods said.
The infrastructure upgrade work is being carried out by the Te Aranga Alliance of construction and infrastructure experts Higgins, Goodmans, Beca, Harrison Grierson, Fletcher, Brian Perry Civil and Orogen.
“It is still early stages of developing the programme but the initial estimates indicate up to 250 jobs could be created to carry out this work over the next several years, in addition to opportunities for contractors at different stages of the project,” Woods said.