So far, 11km of pipe has been installed and 5km has been pressure tested within stage two.
Work on Taylors Hill started a couple of weeks ago and is expected to take up to 10 weeks in total.
There are traffic cones laid out on Taylors Hill to divert traffic around the work area and the speed has been reduced from 70km/h to 30km/h.
The Parallel Rd Treatment Plant upgrade, stage three of the project, will be the final step in completing Te Awamutu's upgraded water supply and work is expected to start this month.
The upgrade work will take place on-site and involve building a new plant to treat water to modern environmental standards and will include increasing capacity at the treatment plant to cope with future demand.
The upgrade is expected to be completed by the end of 2021.
A part of the work in stage one of the project installing pipes between Cambridge Rd and Parallel Rd was interrupted by Covid-19 and the nationwide lockdown but this work recommenced last month and final pressure tests passed recently and the road detours in place were lifted last week.
The road detour directed Te Awamutu-bound traffic down Lamb St, Roto O Rangi and McLarnon Rds.
There is still some work to be done on this part before stage one of the project is completed but the work that is needed can be done outside the road corridor.