A drainage pipe is to be installed to clean up water at a bay which is contaminated with sewage.
The Environment Agency has advised against swimming and bathing in Cullercoats Bay since 2017 because of the poor water quality.
To tackle the problem Northumbrian Water is to install a pipe on John Street to divert contaminated ground water to a sewer.
The project is being run by the water firm and North Tyneside Council.
In 2021, according to the Environment Agency, 26 pollution risk warnings were issued for the Cullercoats Bay area alone.
Cullercoats councillor, Willie Samuel said: "I am delighted this work is taking place.
"We are now very optimistic this will resolve the ongoing problem of contamination in Cullercoats Bay."
'Vital to economy'
A Northumbrian Water spokesman said: "The underground pipe will divert a known source of contaminated groundwater water from a disused local authority culvert into the combined sewer network, to see if that has a positive effect on the sea water quality."
The spokesman added investigations carried out show no evidence of the water company's assets being a primary cause, adding, "Contaminated groundwater is likely to be the primary cause".
Work on the pipe would begin in November and should be completed by Christmas, the company said.
Campaign Group, Cullercoats Collective, told the Local Democracy Reporting Service: "We are happy to hear that progress is being made on improving the water quality in Cullercoats bay and hopefully starting the process that will see a blue flag given to the bay.
"The local businesses that rely on people locally and from further afield choosing Cullercoats as a place to swim, paddle or just to visit is vital to our economy."