Residents of Bonyunyu in Nyamira County have agreed to support the construction of a Sh5 billion dam along River Gucha.
Over 200 villagers living near the river had early opposed the project saying the government refused to compensate them.
They came into an agreement following talks with the Lake Victoria South Water Services Board and local leaders.
The dam will supply water to urban areas in Nyamira and Kisii Counties once it is complete.
Omwenga Onyambu, the villagers' spokesperson said the residents decided to support the construction after they were fully informed on the importance of the project.
LVSWSB Director Victor Omanwa assured that the dam will transform the surrounding areas socio-economically.
"Locals will get employment opportunities once the construction works of the project starts”, Omanwa said.
The water project is funded by The Netherlands.