"The Government is contributing $10.88 million to this project, with extra funding coming from Manawatū District Council. This will provide the community with safe drinking water," said Parker.
Remediation and clean-up of contaminated land were top priorities, he said, especially when contaminants were close to buildings, water, and the community.
The contamination around Ōhakea was caused by the group of chemical compounds known as per- and poly-fluoroalkyl substances.
They are man-made chemicals that have been used since the 1950s, and have proved long-lasting in the environment.
The new water scheme was expected to cost $14.5m with Government paying $10.88m of that and Manawatū District Council paying the rest.
Parker also welcomed the safe removal of hazardous waste from the Sustainable Solvents Ltd site in Ruakākā, Northland.
Both initiatives were being funded through the Ministry for the Environment's Contaminated Sites Remediation Fund.