Minister of Community Services John Streicker is hoping the construction of the new facility will be completed no later than 2026.
The Yukon Government is currently in conversation with the City of Dawson around the future operations of the city's wastewater treatment plant.
According to the territorial government, it costs $950,000 to operate the plant on an annual basis, and rising costs and performance issues are raising concerns about the plants long-term viability.
Minister of Community Services John Streicker says it's important to start the conversation for a new plant in Dawson now.
"From all the things we look at, we can see that the plant has a very limited shelf life on it now. It was important to get that conversation started with the City of Dawson because we we're always working with them, trying to prioritize infrastructure that they're identifying. We just want to make sure this becomes part of that conversation as well."
Corix Water Systems Inc. was awarded the contract to build and operate the plant in 2013 however the facility struggled to meet the requirements of its water license from the outset.
Streicker also says the new plant will be done cheaper and better.
"We should look for something more traditional...and something much less expensive. A typical community would have a sewage lagoon.Once you decide on location and the type of facility that you will be building, than you can figure out what the costs will be over time".
Streicker says he aims to build the facility by 2026, but ultimately hopes it will be open sooner to save everyone more money.
"I would be very happy if we managed to get a solution that came even earlier than that. Whatever solution we arrive at... that facility would cost a lot less to run."
The Yukon Government took over operations and maintenance of the wastewater treatment plant in early 2018.

BC man convicted of manslaughter
Hamilton Boulevard trail cleared as winter pilot project wraps up
Yukon RCMP roll out new navy-blue uniform shirts
Yukon releases final flood maps for Dawson, Klondike Valley, Upper Liard
Inquest into the death of Manui Roux to be held in Whitehorse
Yukon municipalities to receive record $30 million in funding
Yukon expands winter electricity relief for residents
Ross River Dena Council says 'no' to proposed mining on its traditional territory
LSCFN stands firm: 'No mining in the Breadbasket'
Yukon Government accepts responsibility for abuse at Jack Hulland Elementary
Whistle Bend road connector project gets $8.7M boost from federal government
Yukon Government signs deal with Alliance Health for primary care clinic
Man Missing in Whitehorse: Reuben van Klaveren Sought by RCMP
Yukon Government passes health authority act amendment amidst first nations concerns
Selkirk First Nation announces election results
Carcross/Tagish First Nation cuts community safety services amid funding shortfall
Yukon First Nations Outraged Over Clean Energy Act Repeal
The Yukon Employees’ Union is weighing in on the Health Authority Act’s uncertain future
The Village of Haines Junction has announced the launch of a new grant program
Yukon's air ambulance program gets upgrade