LANZHOU, July 11 (Xinhua) -- China's northwestern city of Lanzhou, infamous for its tap water contamination incidents, will invest 5.687 billion yuan (929 million U.S. dollars) to channel headwaters to ensure water safety, local authorities said Saturday.

The project, expected to be completed by the end of 2016, will divert water from Liujiaxia Reservoir in Yongjing County, which is 75 km away from Lanzhou, said Yang Hongxin, head of Lanzhou Headwaters Construction Project Office.

The project includes a water diversion project, a water treatment plant and two new waterworks. Once completed, it will provide water to urban areas and the Lanzhou New Area, said Yang.

Lanzhou currently has only one source of water in Xigu District, which draws water from the Yellow River. A number of hydropower stations and enterprises on the upper reaches, which produce pollutants, are putting the water source at risk.

Lanzhou Veolia Water Co., a Sino-French joint venture, is currently the sole water supplier for urban Lanzhou.

Tap water contamination caused by outdated water ducts affected 2.4 million people in Lanzhou in April 2014. An another incident involving foul smelling water in March this year gave residents cause for concern over water quality.