The Whanganui District Council has signed off on a new $39 million wastewater treatment plant.
The plant will replace a $15 million facility built in 2007 that was closed in 2013 after a foul stench plagued the town.
Last month the council came to an out of court settlement with MWH Global who designed and built the failed plant.
The price tag of the new plant includes $7.4 million for a sludge dryer, designed to mitigate odour problems, and the cost of disposing of dried sludge.
Construction will begin in July and the new plant will be commissioned within three years