The improvements are thanks to a $14 million grant, which will provide funding for a pump station, water mains and other improvements.
The south suburb of 3,600 people has been plagued by continuous water main breaks and shutoffs due to the crumbling 100-year-old infrastructure, the Dixmoor president has said.
The aging water pipes are slowly deteriorating underground and no longer strong enough to do their job.
"We put Band-Aids on cuts but that's not going to correct the problem. You got to stop the leaks," said Dixmoor Economic Development Director John Thompson.
SEE MORE: Water relief on the way for Dixmoor residents plagued by shutoffs, crumbling infrastructure
Another $2.2 million project funded by the U.S. Army Corps of Engineers will replace a 2-mile water line that will run under Interstate 57. A groundbreaking for that project was held in June.
Officials have said the project aims to reduce water loss, enhance water pressure and bolster firefighting capabilities throughout the community.