Manx Utilities and Garff and Peel Commissioners have met to discuss a solution for the sewage issues in Peel.
They hope to find a suitable place for a sewage treatment and are considering the land, how close it would be to residential areas, and the environmental impact.
Applications for plans are expected to be submitted early next year following public consultations and the project is likely to take 18 months to complete.
Executive Director for Manx Utilities, Adrian Dobbins, says seeking local views and keeping community representatives informed is an important part in the process.
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