The new project will see specially designed floating saltmarshes deployed in coastal waters.
The sewer at Ashurst Bridge has burst several times over the past five years.
The Environment Agency has highlighted maintenance problems and inadequate management of storm tanks.
The burst led to water disruption in Ryde, St Helens, Seaview, Shanklin, Bembridge and Sandown.
Southern Water says the leak is not related to its infrastructure, but to nearby private land.
Julie Wassman, from Whitstable, has not paid her Southern Water bill over its sewage record.
A burst main is disrupting supplies in Ryde, St Helens, Seaview, Shanklin, Bembridge and Sandown.
Residents have criticised Southern Water after a sewage spill in Crawley Down.
The claims come as water bills are set to rise by an average increase of £2.70 a month from April.
