Construction of a new dam with a 520 million litre capacity is expected to be finished by the end of November.

The Freeburgh dam will take water from the Ovens River to ensure water is available during peak periods.

North East Water project manager David Larkin said Bright had water restrictions about three in every 10 years.

The new dam, built at a cost of $14.3 million, will reduce that to one in 20 years.

“It will increase the reliability of the water supply at Bright significantly,” he said.

“Water will be pumped from the Ovens River into storage in the winter time when there are high flows.

“That will then see us through the summer.”

Mr Larkin said the storage equated to 520 Olympic swimming pools and spanned 40 acres at a depth of five metres.

Bright does not currently have any water storage facilities.

“The town did go pretty close to running dry in 2007,” he said.

“The site selection was pretty controversial but I think people recognise that North East Water is investing a substantial amount of money in the district.

“It will be to the economic benefit of Bright, Porepunkah and Wandiligong and will facilitate growth.”

A 7.6-kilometre pipeline has been built and the next stage will be water treatment plants in the three towns.

Alpine Shire Council mayor Peter Roper said there had been tension within the community.

“But that is all past history,” he said.

“Once fully operational Bright will have a reliable and uninterrupted water supply.”