Plans have already been drawn up by Professional Engineering Services for the project - the re-laying of broken sewer lines in the city.
“We'll start with the worst lines and go as far as the money goes,” said Mayor Carter on Tuesday morning.
Work on the project will begin after bids have been taken by the city.
Funding for the project will include $43,479 in local funds. The grant dollars were provided by the U.S. Department of Housing and Urban Development.
The grant was applied for under the direction of former Mayor Bill Wells, and has the support of of Senator Mae Beavers and Representative Frank Buck. Senators Lamar Alexander and Bob Corker, and Congressman Bart Gordon assisted in the securing of funds.