The city is planning a 10-million-gallon, above-ground sewage holding tank across from the Cameron Harbor development.
Chris Palmer of Jacobs Engineering said the $20 million project will also include a new 30-million-gallon sewage pump station.
He said it is designed to alleviate sewage overflows at the "West Bank" of the Tennessee River near Hamm Road.
Mr. Jacobs said 92 percent of the city's sewage pipes converge at that point. The effluent is then pumped over nearby Stringer's Ridge to the Moccasin Bend Sewage Treatment Plant.
He said sewage overflows at the West Bank up to 10 times per year.
The overflows are sometimes in excess of 40 million gallons, it was stated.
The project is also designed to have aspects of odor control and electrical improvements.
Mr. Jacobs said the overflows are brought on by heavy rains that overwhelm the capacity of pipes to handle the influx. The city still has some combined stormwater and sewage pipes downtown and in North Chattanooga.
He said steps have been taken to inform the community about the project that will go into design in November. It is set to be completed by November 2019.
The project is part of the city's Consent Decree with the EPA.