Severn Trent Water has submitted a planning application to build two more service reservoirs near Ambergate in Derbyshire.
The new reservoirs will help ensure that the company can continue to provide quality drinking water to more than half a million customers in the East Midlands.
The existing reservoir at Ambergate has deteriorated with age and needs replacing.
The firm says if the plans go ahead, work could start later this year.
Andy Smith, director of water services at Severn Trent said:
The firm says if the plans go ahead, work could start later this year, or in early 2013.
It is scheduled to be completed by the end of March 2017.