Phase II of this project is currently in design and will reduce CSO activity and upgrade portions of the collection system on the north side of the Kennebec River.

The project will include construction of a 1,000,000 gallon underground storage tank for wet weather flows, some sewer separation, upgrades to three pump stations, and the replacement of the treatment facility on Norridgewock Avenue with a pump station. The majority of the work will occur on Commercial Street, Water Street (both downtown and from Dinsmore Street to just beyond Kennebec Street), North Avenue (from Water Street to High Street), East Street, East Leavitt Street, the municipal parking lot adjacent to Commercial/Court Streets, and the parking lot adjacent to Town Hall. The Engineer and Contractor will work closely with the Town, Maine Department of Transportation and local business owners to minimize the impacts of the construction activities; however, traffic disruptions are going to be inevitable.

The Phase II funding was approved at the 2004 Town Meeting, and is expected to cost 7.7 million dollars. Construction of the Phase II project, including temporary paving, will occur during the 2006 and 2007 construction seasons, with the Maine Department of Transportation and the Town of Skowhegan performing final paving during the 2007 construction season.

One component of this project includes the replacement and relocation of the Water Street Pump Station, which serves the east side of Town and the Aqua Maine water treatment plant. The existing pump station is located on the south side of Route 2 and is only 100 feet from the normal banks of the Kennebec River. Due to flood plain issues, operator safety and access issues, it was decided to build the new pump station on the Town-owned property within the Louise Helen Coburn Memorial Park between Heselton Street and Route 2, rather than in the existing location. The new pump station will be 250 feet from the normal banks of the Kennebec River , but will still be located in the flood plain. As a result its control panels and electrical connections will have to be mounted on a platform that will remain dry, even during the 100 year flood. To mitigate the aesthetic effects of the pump station and platform on the park, stockade fencing and landscaping will be used to hide the station from view. Construction work on this station is expected to begin during the fall of 2005 and finish during the late spring of 2006.