A wholesale water company on Stillhouse Hollow Lake has begun work on a $22 million project that could guarantee water supplies to more than a dozen communities across several Central Texas counties for up to 40 years.

The Central Texas Water Supply Corp. landed a 20-year, interest-free federal loan to build a new water treatment plant, two water towers and almost 10 miles of new pipe that will run under both Interstate 35 in Salado and Salado Creek.