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Mexican water authority Conagua published a notice for an international public tender to build a new village for the residents of Acasico, one of three communities in Jalisco state that will be relocated to make way for the Zapotillo dam.
The presentation and opening of proposals will be held on January 20, according to the federal government procurement website Compranet.
The winner will be announced on February 20 and works are due to start February 25. The new village for Acasico's 365 residents needs to be ready by August 2016.
The communities of Acasico, Palmarejo and Temacapulín will be flooded when the dam becomes operational. Residents of Temacapulín – the largest of the three – as well as academics and NGOs have filed legal complaints against the dam project, leading to work being halted several times.
Currently work is stopped, with the dam wall 79.7m high, due to a court order.
The supreme court has also agreed to hear a case filed by a resident who claimed the right not to be relocated and to live in a healthy environment.
Nevertheless, construction of the Zapotillo-León pipeline began in October. It will receive water from the Zapotillo reservoir to supply about 1.5mn people in León, capital of Guanajuato state, the Altos de Jalisco area and Jalisco capital Guadalajara.