The town of Lukavac is located circa 80 km north of Sarajevo; near the town of Tuzla and close to the Lake Modrac. Total population of Lukavac is almost 57,000 inhabitants and the town has industrial character. Currently, the supply of drinking water is ensured by direct pumping of water from the Lake Modrac. A company engaged in coal mining in the vicinity of the town, uses the lake water for its activities, while using its own water treatment plant. The treated water is then distributed to the town as well as to the consumers and commercial subjects in Lukavac. Even though the technology for treatment of drinking water are obsolete (50-60 years old), the water is still used for drinking purposes. The water contains excessive amounts of manganese and nitrogen oxides, which are produced by existing extractive industries around the city (some of the industrially polluted waters lead into the lake Modrac).

Town of Lukavac intends to implement a new source of drinking water which will use underground water from four drilled wells. This new source of drinking water will be conected by new water pipes with new water treatment plant. The plant will supply the existing reseivoire „Doložaj“ (capacity of 2x1000 m3).