A 250-metre stretch of Alexandra Canal, between Zion Road and Kim Seng Road, will be reconstructed to improve drainage and prevent floods.
The national water agency PUB said on Monday the stretch will also be transformed into a scenic waterway with recreational spaces.
The canal will be widened and deepened from an original 27m-by-3m trapezoidal drain into a 28m-by-5.7m U-shaped drain.
This is expected to improve drainage capacity and help alleviate flooding at nearby low-lying areas such as the junction of Alexandra Road and Lower Delta Road, and the area between Jervois Road and Prince Charles Crescent.
PUB has awarded the public tender for the Reconstruction of Alexandra Canal project to Eng Lam Contractor Co (Pte) Ltd at S$46.8 million.
The project starts next month and is scheduled to be completed by the first quarter of 2014.
PUB said the transformation of the waterway will bring a softer, more natural landscape to the busy urban setting.
A rain garden will also be incorporated to help treat rainwater runoff from the promenade so cleaner water flows into the canal.
Four cantilever viewing decks will also be constructed together with landscaping to allow visitors to enjoy views.