Kiribati's Minister for Finance and Economic Development, Teuea Toatu, says the Green Climate Fund is providing $US28 million dollars for the country's biggest ever water project.
Dr Toatu told Radio Kiribati this project will be the beginning of a process to transform the islands and help the people build resilience to the impacts of climate change.
It comes at a time when the main South Tarawa water source, the Bonriki groundwater lens, is already significantly under stress which will worsen with the impacts of climate change.
The South Tarawa Water Supply project will cost US$58 million.
As well as the GCF money, there will be backing from the Kiribati Government, the Asia Development Bank and World Bank.
The project will provide water 24 hours a day and seven days a week to the South Tarawa population, targeting the livelihoods of over 50% of the country's population.