Murang'a Water and Sanitation Company (Muwasco) plans to build a Sh3 billion mega dam in a bid to meet the needs of area residents.
According to the initial design, it will be set up in Kangema where the county borders the Aberdares Forest and will have a capacity of 400,000 cubic metres.
Muwasco chief executive Daniel Ng'ang'a said the firm will partner with other investors to ease the financial burden related to the project.
"We are still at the feasibility stage as we source for funds from our partners.It is a mega project that requires a lot of planning," he said.
The company made the announcement during its Annual General Meeting on Friday.
The water will not only be used for domestic purposes, but will facilitate irrigation in the semi arid lower parts of the county.
These include Mukuyu, Kambiti and Maranjau.
Residents have complained over water scarcity due to the current drought.
"As a result of devolution, we are having very many people settling in the county. We want to invest in storage so we can cater for growing need," he noted.
Eng Ng'ang'a reassured that the dam will store rain water which will satisfy the rising population and will act as a convenient mitigation measure in case of a recurrence of a dry season.