Saskatoon is moving ahead to supply more drinking water to its residents, with a $25-million expansion to its water supply system.

Currently, the city can store 109 million litres of water at its three reservoirs.

As part of the expansion and upgrade, approved by council members Monday, Saskatoon will add 20 million litres of water storage capacity to the reservoir on 42nd street.

"It'll allow us to really optimize the performance of the treatment plant," Jeff Jorgenson, Saskatoon's manager of utility services, explained. "We'll be able to run it at an optimum level and just let the reservoirs handle those peak days."

Council approved awarding a contract for the project to PCL Construction. Work is expected to begin this year with completion by 2015.

The provincial and federal governments are also helping out with the cost.