Severn Trent is spending £300,000 installing three kilometres of new pipes from Marton to Chirbury, to help reduce the number of leaks and bursts.
The work has required the closure of a stretch of the B4386 between Marton and Chirbury.
In a statement, Severn Trent said the work is "going really well so far" and is expected to be complete at the end of August.
The latest stage of the work will be happening along the B4386 from the Aylesford Bridge Junction – The Folly Junction – down to the A490 in Chirbury.
Catherine Webb from Severn Trent, said: “We know it’s still a challenging time for many people right now, but making sure our customers have a reliable water supply is as vital now as it’s ever been. That’s why residents in this part of Shropshire will see our teams working in the area to carry out these essential upgrades.
“To allow us to carry out the work safely, we have agreed with the local authority to close the road. We know this is going to cause disruption, and we absolutely apologise for that, but the road is very narrow and we have to keep both local road users and our own workers safe at all times.
"Access to properties, businesses and pedestrians will be maintained where possible and there will of course be a well sign posted diversion route in place.
She added: “We’ll be doing everything we can to minimise the disruption and we’d like to thank everyone in advance for their patience as we get this essential work done. Once all of the work is complete, the area will have a modern and reliable water network that will last for generations.”