Linville will have its new $2 million water treatment plant in six months, with work starting this week.
Natural Resources Minister Dr Anthony Lynham said demolition would take two weeks, with construction to follow.
"The new plant will deliver a more reliable, effective drinking water supply to the 400-plus people of Linville," he said.
"It's creating jobs as well, with a local contractor and six sub-contractors working on the project."
The existing plant, which was constructed in 1970, was forced to close after the 2013 floods put the facility out of action.
Seqwater will continue to tanker in drinking water from the nearby Kilcoy Water Treatment Plant until the new plant is operating.
Seqwater Chief Executive Officer Neil Brennan said the project was expected to take up to six months to complete, subject to weather conditions, with the new plant operational by early 2020.
"The new plant will be larger and house an improved water quality monitoring station, which will draw on water locally," Mr Brennan said.
"It will also have upgraded filters and ultraviolet (UV) disinfection capabilities for added protection.''
Mr Brennan said Seqwater was working closely with local residents during demolition and construction to minimise any disruptions.
Residents can stay up to date with progress atseqwater.com.au/works.
