According to Illinois Gov. Pat Quinn's office, the money and improvements will benefit 180 homes that currently have inadequate sewage or septic systems.
Quinn says there is no excuse for people not having access to 21st-century water and sewage systems.
Other officials say the effort will benefit more than just homeowners.
"In addition to bringing safe and sanitary water and sewer to this neighborhood, this project allows us to lay a good foundation for future economic development in this area," said Larry Walsh, a Will County executive.
Part of the money is coming from the federal Recovery and Reinvestment Act.