The Capital Regional District has approved a $30,000 grant application for engineering studies on the Kemp Lake water system.
The studies are funded under the provincial Community Works Fund, which supports local projects.
Island Health has ordered Kemp Lake Water Improvement District to upgrade its water system, and a plan has been in the works since 2005 to hook the system to CRD water.
But the $2-million project has had several delays over the years, including grant applications denied by both the provincial and federal governments.
Last summer, Kemp Lake issued a boil warning after a water test revealed unknown contaminants, but officials said the water order served more as a precaution than as a health concern.