The water company plans to create a 5km storm relief sewer in the Counter Creek area which will help protect 1,700 homes from sewer flooding.
The area has suffered seven sewer flooding incidents in 14 year, with the most recent occurring in 2007.
The scheme includes innovative trials of sustainable drainage systems (Suds) and measures to protect individual properties, which has helped to “substantially reduce” the overall cost of the project and limit the length of the new storm relief sewer.
Thames Water managing director Lawrence Gosden said: “Sewer flooding is a truly miserable experience and it is simply unacceptable that so many people in this area should fear being flooded with sewage every time it rains.
“We appreciate our work will cause some disruption, but this scheme is vital to protect homes and businesses.”
The water company added it is looking at ways of linking the Counters Creek project with the Thames Tideway Tunnel so it can take the extra sewage collected by the Counters Creek storm relief sewer.
Thames Water also stated that Suds trials will take place in Hammersmith and Fulham and in Kensington and Chelsea from the middle of next year.
This will include changing of hard surfaces to permeable materials and more green areas in streets which drip feed rain into the sewer system.
The public consultation on the Counters Creek sewer flooding relief scheme closes on 25 January.