Irish Water are to work with Carlow County Council to "clarify the scope of the Town and Village Renewal works" over a threat to the €100,000 allocation for Tinnahinch.
"Are we going to lose that €100,000?" Cllr Willie Quinn asked Carlow County Council over what he claims is a delay in Irish Water works in Tinnahinch which is preventing the local authority from drawing down Town and Village Renewal funding.
Last year, Tinnahinch was allocated €99,532 for "village enhancement and tourism" under the scheme and he is concerned that Carlow will miss the deadline to draw down the funds this September.
In response to this, Irish Water have said: "As with all of our water network improvement projects that are taking place under the Leakage Reduction Programme, we work closely with local authorities to identify overlap between our proposed works and any upcoming street renewal works.
"Many such projects have been carried out in parallel in other to improve synergies and reduce disruption to the local community.
"In relation to the Tinnahinch Town & Village Renewal, we are not aware of any such overlap at present but are working with Carlow County Council to clarify the scope of the Town and Village Renewal works."
Speaking at this month's meeting of Bagenalstown Municipal District, Cllr Quinn said: "The Town and Village funding is be drawn down by September or we lose it.
"Irish Water were supposed to go from Bagenalstown to Tinnahinch to carry out [watermains rehabilitation] works but they've gone to Tullow and we're now into July.
"Are we going to lose that €100,000?"
Director of Services at the local authority, Dan McInerney, said he didn't realise there had been a switch and he would look into it.
Cllr Quinn added that he was told they would start on the infrastructure works before September of last year.
Mr McInerney said every release from Irish Water says the works are carried out "in partnership with Carlow County Council".
He added: "Tinnahinch will be a true test of 'in partnership with Carlow County Council'," and he said he would ensure that works start "as soon as possible".