Hundreds of kilometres of new interconnecting pipelines - stretching from North Lincolnshire, through Cambridgeshire, to Suffolk and Essex - will be laid as part of the scheme.
The Bury St Edmunds to Colchester pipeline will run for 68 kilometres and includes new above-ground assets in seven locations, including pumping stations.
Subject to planning consent, the water company expects pipelaying work to begin in 2023.
The four councils along the planned route are West Suffolk District Council, Babergh and Mid Suffolk District Council and Colchester Borough Council.
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It is one part of a new network which will stretch from Lincolnshire to Essex, bringing water from the wettest parts in the north of the region to the driest areas in the south and east.
John Neil, who leads the team delivering the Bury St Edmunds to Colchester section, said: "The new pipelines will allow water to be moved to areas where it is needed most, while also strengthening local resilience by reducing the number of homes and businesses which rely on a single water source.
"They are vital in addressing the predicted ‘jaws of death’ moment for water availability in the East of England – the point at which demand for water greatly outstrips the available supply.
"With 175,000 new homes to be built in the next few years, it is vital we ensure we have resilient infrastructure in place to support local authorities in delivering their Local Plans, and residents who live in the area.
"We look forward to working with all of the local councils as they review our application."
