The pipeline to send recycled water to Lake Wendouree is on track for an end-of-year completion.

Melbourne company JHL Civil has laid more than half of the pipeline, which will connect the Ballarat North Treatment Plant in Gillies St with Pauls Wetland in Dowling St.

Central Highlands Water spokeswoman Nicky McMaster yesterday said the 3 kilometre pipeline will send two megalitres of class A treated wastewater into the lake daily as part of the Lake Wendouree Reuse Scheme.

"It's over 50 per cent complete and is still on track to be finished by the end of December," Ms McMaster said. The pipeline - which is purple to indicate it carries wastewater - is 20 centimetres in diameter and will pump 600 megalitres of water a year into the lake.

The pipeline has been laid underground from the treatment plant in Gillies St and along Giot Dve.

Works are currently being undertaken along Dowling St, with the pipeline to go under the roundabout at the corner of Dowling St and Grevillea Rd before it reaches the wetlands.

JHL Civil was awarded the contract in September over four other companies, including two local firms.

They will also build the storage and pump stations and other associated works.

The pipeline is part of the $7 million Lake Wendouree Water Supply Project, jointly funded by the State Government, CHW and the City of Ballarat.