The agreement for the project was signed between Ambassador of Japan to Pakistan, Hiroshi OE and President of SWS, Muhammad Fayyaz here on Wednesday.
The grant will be utilized for laying down 19km pipelines, construction of 4 storage tanks, 2 distribution tanks and payment to the labourers.
Through this project, water will be supplied to approximately 200 houses on a very nominal rate.
Speaking at the signing ceremony, Ambassador Hiroshi OE stressed that improvement of water supply and sanitation is one of the priorities in Japan's assistance policy to Pakistan.
He expressed the hope that project will help the community, especially women and children, to utilize their time on productive activities such as on education and enhancing their income sources.
Such assistance by the government of Japan will further cement the relationship and friendship that exist between Japan and Pakistan, he added.