The European Investment Bank loan will also be used to finance improvements including the proposed pipeline to link West Cumbria to Thirlmere - as well as the rest of the regional water network.
Russ Houlden, chief financial officer at United Utilities, said: “In 2015-20 we are delivering an investment programme of around £3.5bn for the benefit of customers and the environment and to improve our ability to cope with climate change.
“We aim to do this at the lowest sustainable cost possible in order to keep bills down and this low cost funding from the EIB helps us to give our customers excellent value for the bills they pay.”
Jonathan Taylor, European Investment Bank vice president said: "The European Investment Bank has provided GBP 2.25 billion over the last 12 years to support investment by United Utilities that benefits customers, the environment and the north-west regional economy.
"We are pleased to continue this strong engagement with United Utilities that will ensure that water infrastructure can cope with the region’s growing population and business sector, help customers to save money and ensure services are maintained during dry spells or heavy rain.
"As the largest lender to the UK water sector since before privatisation the European Investment Bank recognises United Utilities’ commitment to offer graduate and apprenticeship schemes and work with local suppliers to maximise the impact of their ongoing investment.”