The new water tower at 4611 7-Mile Road will be completed later this spring.
According to Water Utility Commissioner Bob Bradley, the tower is two-thirds complete and is right on schedule.
"We are right on schedule for completion," he said. "It needs paint, but we can't do that until the spring."
This new tower holds 750,000 gallons of water, compared to 100,000 for the old one. Caledonia trustees voted last May to borrow the $1.36 million needed for construction.
Once complete, the new water tower will serve as water reserves for fire protection in areas where there aren't fire hydrants as well as help maintain water pressure for homes further away from the water treatment plant.