City officials said work should start near the end of the year on installing a large stormwater storage facility near the river at Hamm Road to help prevent sewage overflows.
Work on the design of the project is about 60 percent complete, members of the City Council were told.
The tank will be near the planned gateway museum to Moccasin Bend National Archaeological Area as well as across the river from a host of new apartments, condos and townhouse at Cameron Harbor.
Officials said they have been in contact with Friends of Moccasin Bend about the work.
It is to have some screening with buffers and vegetation.
Justin Holland, public works administrator, said it will be entirely above ground. He said it costs about $10 million to install an above-ground tank and four times that cost when it is below ground.
The city put below-ground tanks at Finley Stadium and Warner Park. The portion above those tanks is used for parking.
Officials said the Hamm Road site "is fairly industrial."
It was noted the location is less than a mile from the city's Moccasin Bend Sewage Treatment Plant.
Several other sites around the city may get similar tanks as the city seeks to curb periodic overflows of raw sewage into the Tennessee River during periods of heavy rainfall. The city still has many combined stormwater/sewer pipes.
One possible location is along South Chickamauga Creek near Hawthorne Street where the city owns property and has a wood recycling center. That is also an industrial area, it was stated.
The city is also studying the conversion of some alleyways for use as "green infrastructure." The city is looking into rain gardens and bio-retention cells.
A project is slated at Dartmouth Street in North Chattanooga to replace some decades-old pipes with much-larger and sturdier pipes.
The city has set aside $500,000 to repair streets where sewer pipes have sunk in, causing roadway problems. City crews will be doing the work of digging out the damage pipe, putting in a new solid base, adding new pipe and then paving it over.
The special funding will go for materials.