A planning application for a new wastewater plant in Virginia is expected to be lodged early next year.
The project remains at the detailed design stage.
The lack of progress at the site had been criticised, with fears that delays would prevent growth in the town.
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A number of developments were blocked because of issues with the existing wastewater facility in the town.
Irish Water says the works are progressing well and it expects to submit a planning application to Cavan County Council in the early part of 2022.
The utility says it expects the project to be completed in 2024.
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Chair of the Virginia Development Association Patrick Farrelly says the plant is needed because the town is suffering:
