The Asian Development Bank has approved a $US3 million dollars grant to improve access to safe water and sanitation and reduce waterborne diseases in Ebeye.
The bank's Stephen Blaik said it would strengthen the sustainability of the current Ebeye Water Supply and Sanitation Project.
He said it would also help build awareness of basic hygiene practices.
About 9,200 people live on 31 hectares of land on Ebeye, making it one of the most densely populated areas in the Pacific.
Ebeye is also highly vulnerable to many waterborne diseases and other transmissible diseases, including Covid-19.