The design and build contract is worth £27m.
Ambergate reservoir is an asset of key strategic importance to Severn Trent Water with the capacity to supply mains water to approximately 590,000 customers across the East Midlands. The scheme will see the construction of two covered reservoirs of 90 million litres and 50 million litres capacity, to replace the current 128 million litres reservoir.
A planning application has been submitted and is under consideration by the local planning authority.
If approved, work is scheduled to begin on site in January 2013 for four years, with some early enabling works taking place in coming months.