The new water line connects the EWEB distribution system in west Eugene to reserve tanks in Veneta, pumping water from the McKenzie River plant and combining it with their treated well water resources.
The pipeline will help supplement the well water sources and provide for about 20 percent of the town's water needs.
"Veneta's had difficulty with wells that were not well performing. We don't have a great ground water availability. So this is the perfect answer," added Veneta Mayor Sandra Larson.
Along with increasing water supply, the 200,000 additional gallons flowing into Veneta each day help cut down on iron and mineral levels seen in the groundwater.
Officials said the system can draw in more water as the Veneta community grows over the next half-century.
"I've been saying this from the beginning," said public works superintendent Kip Orme. "30, 40, 50 years from now, I think it's going to be the best thing to ever happen to the city."
The 10-mile pipeline project cost $11 million to build. Larson said they started planning the project in 2007.