The need for reform of Irish water was raised in the Dáil by Tipperary TD Mattie McGrath. The TD focused on the frequent outages in the Clonmel area.
Irish water has accepted that supplies to the town are on a knife edge.
The Dáil heard how families, businesses and even the hospital had to deal with outages caused by falling levels in local sources or burst mains pipes.
Deputy McGrath called for immediate funding for a new treatment plant to process water from the nearby river Suir.
Responding the Tánaiste revealed that he had recently met with Niall Gleeson, CEO of Irish Water, and the senior management team to discuss the capital investment programme.
Mr Veradkar accepted that there were many locations where limited wastewater facilities or water supply deficits were preventing both commercial and residential developments.
Irish Water has a massive capital programme with an annual budget of €1 billion to upgrade the water system but said it was not happening as quickly as desired according to the Tánaiste.