The water distribution system servicing Magnetic Island is set for a major upgrade.

NQ Water has announced the Townsville office of Maunsell Australia has been awarded the design contract to upgrade the majority of Magnetic Island's bulk water mains.

The overall contract is worth more than $2.2m.

Supply on the island is stretched because the system is required to act as both bulk water transfer mains to reservoirs, and also as a reticulation system to individual customers.

The project involves replicating more than 6.6km of pipe from Rocky Bay to the Acadia and Nelly Bay reservoirs.

NQ Water Chairman Ian Hamilton says replicating the pipeline will make for dedicated bulk water and reticulation services.

"There are multiple demands on the existing pipe," Mr Hamilton said. "This results in low pressure incidents during high demand periods.

"The new pipe will be a fully dedicated distribution system connecting all of NQ Water's four Magnetic Island reservoirs. This will free up the existing pipe to service reticulation and other demands."

Construction is expected to start in the new financial year.

Maunsell Australia is also the engineering consultancy firm supplying project management services to the new 5.6km Magnetic Island submarine pipeline.