Axnfell Plantation has been proposed as the location for the new Sewage Treatment works for Laxey and Baldrine.
Manx Utilities says over 50 potential sites were reviewed, with land availability, proximity to residential areas, highway access, environmental issues and carbon costs all considered.
The North Eastern area of the plantation has been selected as the preferred site, with space for 'potential future expansion.'
A public exhibition event will be held to allow the community to comment on the proposals ahead of a planning application being submitted later in the year.
Gales put two ferry sailings at risk tonight
Should the Island throw a birthday party for Barry Gibb?
Warning issued over icy roads
High ground could see 4 inches of snow on Saturday night
Mountain Road unlikely to open before Monday
Yellow warning for freezing temperatures tonight
School bangers night called off
AK47 and Uzi handed in to police