A $12 million upgrade to Yirrkala's water supply has been completed, with a second phase worth $17.2 million expected to begin in mid-2027.
Phase 1 of the Gove Peninsula Water Supply Upgrade is a project jointly funded by the Australian Government through the National Water Grid Fund and the Northern Territory Government, and delivered in partnership with Power and Water Corporation.
It involves replacing 5.6km of ageing water pipeline and 197 service connections in the remote NT community on Yolŋu Country in East Arnhem Land.
The works are expected to improve water reliability, reduce water loss and increase capacity to support future housing and community development, the federal and NT Governments said in a statement.
Lingiari MP and Remote Communities Envoy Marion Scrymgour said the federal government is committed to remote communities across the region to make sure "they have access to the services they deserve."
"This is a really important upgrade for the Gove Peninsula and for Yirrkala and will make a big difference to the community," she said.

Regional Aboriginal business Bukmak Constructions carried out the construction work, supporting approximately six local jobs.
Power and Water Acting Executive General Manager of Water Services Kylie Collins said replacing the ageing pipelines would help secure the community's water supply.
"Just as importantly, this project has supported local Aboriginal jobs, with local Aboriginal company Bukmak Constructions delivering the work on Country," she said.
"It's a great example of how investment in essential infrastructure also creates employment and opportunities within the communities we serve."
Planning and assessment work completed during Phase 1 has also paved the way for the second stage of the project, backed by a further $17.2 million from the Australian Government, the Northern Territory Government and Gumatj Corporation.
Environment and Water Minister Murray Watt said the investment would improve water security and support future development.
"No matter how remote, all communities deserve clean and reliable water," he said.
NT Minister for Essential Services Steve Edgington said the project would help meet Yirrkala's infrastructure needs.
"We're investing in the water infrastructure Yirrkala needs to support its community and secure its future," Mr Edgington said.
Phase 2 is expected to begin in mid-2027 and will build on the planning and assessment work completed during the first stage.