The U.S. Army Corps of Engineers said the project will improve the quality of drinking water.
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After several water main breaks, resident Connie Metcalf-Cosby has been praying for the village to find a solution.
"Even today, I'm still scared to drink the water," she said. "I still drink the bottled water."
U.S. Rep. Robin Kelly and Cook County Board President Toni Preckwinkle presented a $2 million check to the south suburban village which will help fund a new water main project to ensure that residents have access to clean water in their homes, schools and places of work.
"Federal and local funds equating to the amount of about two million dollars will be used for the installation of 3,650 linear feet of 12 inch water main," said U.S. Army Corps of Engineers District Commander Paul Culberson.
"Thanks to the good work of President Biden and passing of the Infrastructure Investment and Jobs Act, our country has finally seen the beginnings of a historic investment in our communities," said Cook County Board President Toni Preckwinkle.
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Last year, Dixmoor was without water for two weeks after major leaks disabled the system from filling its water storage tank.
Not only did all 3,500 village residents lose access to clean water, but local businesses and schools were forced to shut down. Residents had to boil water or use bottled water.
Last month, there was yet another problem when water to the village had to be shut off when a pipe broke.
"This crisis has really hindered Dixmoor," said Mayor Fitzgerald Roberts. "We're going to move forward. We're gonna stand strong."
"This project is another example of the progress possible when government agencies work together for the common good," said U.S. Representative Robin Kelly.
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While Village President Fitzgerald Roberts said roughly $25 million is needed to fix the issue completely, residents are thankful something is being done.
"Any start is better than no start, so I'll take it," said Felicia Dixon, Dixmoor resident.
Construction is expected to begin in the spring of 2023 and will take about a year to complete.