The new works, plans for which have been years in the making, will be at the current silt lagoon field that will remain under DOI control, and the three fields in-land of Peel Power Station to the east of the Heritage Trail.
The site will overlook Castleview Nursing Home, which is located on Ballatessan Meadow, Peel.
A spokesperson for Manx Utilities said: ‘We envisage that only the two fields furthest away from the power station will be required for its works and that access to the site will be via the A27 Glenfaba Road; avoiding the need to take works traffic through the centre of Peel.’
Manx Utilities has set the estimated timeline for completion of the works as the end of 2025.
The electricity and water supplier for the island reached a verbal agreement for the site back in October 2022 but has only been able to confirm that this site will be used now due to negotiations dragging on.
Chair, Tim Crookall MHK said: ‘There has been a great deal of work undertaken in the background to get us to this point in the scheme.
‘I am delighted we can now move on to the delivery of first-time modern sewage treatment for Peel.’
Manx Utilities now intend submit a planning application ‘later in the year’ now that ground investigations are complete with the data being analysed to inform the design.
This information comes four weeks after the authority announced that its Laxey sewage treatment works would be at the Axnfell Plantation.