The planned building of 50 houses for purchase by the Council in Clonhaston, Enniscorthy can’t go ahead until Irish Water carries out upgrade works at the water treatment plant at Vinegar Hill.
Planning permission is in place for 150 houses, 50 of which will be for social housing.
However Fine Gael Councillor Cathal Byrne says Irish Water has delayed the deadline for completion from 2023 to 2024.
This means the project does not have access to the public water supply.
Councillor Byrne says families are desperately waiting to be housed.