The approximately 700-foot extension includes the installation of two deep manholes and will connect two other properties to the city sewer.
The Finance Committee on Monday supported a $650,000 borrowing under the Sewer Enterprise Fund for a connection to Herman Melville's Arrowhead.
It's estimated more than 10,000 gallons of sewage went into the storm drains and out into the river at Eagle and River street.
The Select Board voted to transfer $36,000 in ARPA funds on Monday night to supplement the $50,000 that it already has appropriated for the Dalton Division Road Sewer Project.