It's hoped to have consultants hired to design the Kenmare Flood Relief Scheme by early in 2021.
In recent months, Kenmare has suffered during times of heavy rainfall, with a number of streets and properties being damaged by flood water.
Nearly €5.5 million was allocated in July of this year for works to mitigate against future flooding.
The OPW says it'll take between 12 and 18 months to complete the design, with consultants due to be hired in February of next year.
Members of the Kenmare Municipal District were informed of the plan at their recent monthly meeting.