The company will install 30 miles of new water mains to connect the system in Ayrshire and the Greater Glasgow area's network.
The four-year project will connect the Bradan water supply network to the network served by the Milngavie and Balmore water treatment works, north of Glasgow.
When complete, the investment will enable water to be transferred from Glasgow to Ayrshire, and vice versa.
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Announcing the investment with Cabinet Secretary Keith Brown, Scottish Water's Chief Executive Douglas Millican said: "This major strategic investment scheme, which will deliver a more resilient water supply network for Ayrshire, is the first stage in our investment to improve connections between water supply networks across Scotland.
"We have invested significantly in improvements to water quality in parts of Ayrshire in recent years and now, as proposed in our strategic projections, we will improve much of the area's water supply resilience by creating a new link between the supply systems.
"The investment in new pipelines and associated infrastructure below ground will support the continued development above ground in communities across these areas and will enable them to continue to grow and thrive.
"It's a very important and much-needed project which will benefit people in much of Ayrshire and part of East Renfrewshire for decades to come."
(LM)
