Dili’s current water system provides an intermittent supply of non-potable water to just 30% of Dili's population, and subject to high levels of leakage, government data shows.

The 320-kilometre water network project will benefit more than 36,200 households and businesses in the capital city, ADB said in a statement. It also includes funds to develop two water treatment plants, 13 groundwater holes and five service reservoirs.

"Rapid urbanisation and a growing population in Dili are putting pressure on the city's water resources and facilities," said Sunil Mitra, ADB’s Timor-Leste Country Director.

"The Dili West Water Supply Project will help strengthen the city's water supply network, improve service delivery, and enhance the regulatory environment to deliver safe drinking water."

Some 191, 232 people in Timor-Leste do not have access to clean water, according to data from Water Aid.