Scottish Water has told council leaders it will put "substantial investment" into new water and sewerage supplies so more new houses can be built.
Scottish Water has taken flak over the issue of new housing
The company has been accused of holding back development in the Highlands and Islands.
Its chiefs met senior councillors and officials from Highland and Western Isles councils on Tuesday.
Scottish Water's head of development Alan Thomson said the company plans to invest £100m in improvements.
Last week, Highland Council planners and councillors said up to 3,000 new houses cannot be built in the region because of constraints on water and sewerage supplies.
Highland Council convener Alison Magee; Iain Macleod, vice-chairman of Comhairle Nan Eilean Siar's (Western Isles Council) environmental services committee and Highland's planning director John Rennilson met Scottish Water bosses at the company's Dunfermline headquarters.
Mr Thomson said the meeting was constructive.
He added: "During the next investment period Scottish Water plans to invest at least £100 million in quality-driven projects to further improve the environment and drinking water quality."
Mr Thomson said he will spend next week in Inverness with his development team to identify priority projects.
Councillor Magee said: "We welcome Scottish Water's commitment of substantial development in the Highlands and Islands.
"However, we have already given Scottish Water detailed information about the constraints currently experienced in water and waste water as well as a list of our priorities for investment."
Scottish Water said it Tuesday's meeting was one of a series held on the issue of new development.