By the first half of the 19th century, it was felt that the water supply to the city required upgrading. The population of the city was increasing rapidly and new suburbs developing on the city's north side could not benefit from the existing system as they were above the water basins. In addition, it was considered that the use of wooden pipes and untreated, unfiltered water was out-dated. Thomas Wicksteed, one of the most respected water engineers of the time and engineer of the East London Waterworks was commissioned to report on the existing services and make recommendations for a new scheme.
In 1854, the Pipe Water Company instructed John Benson to make a survey of the existing Waterworks. By February 1857 Benson had prepared a plan for a new Waterworks, based on Wicksteed's earlier recommendations. Work began with the laying of new cast-iron mains pipes in 1857 and continued for a number of years. By February 1859 these new water pipes had reached the military barracks on the Old Youghal Road. By this time the Pipe Water Company had been taken over by Cork Corporation, who remain in charge of the municipal water supply to this day.
The Benson scheme worked by supplying water from the River Lee to two reservoirs located on Prayer Hill, further uphill than the 18th century water basins. Water was then supplied to the reservoirs by two turbines located in a turbine house by the river's edge and a metal waterwheel. In the summer months, when the water level in the river was low, water was pumped up to the reservoirs by a 90 horse power Cornish beam engine. This engine was steam powered, and so required boilers. Buildings to house the boilers were built, as well as a chimney flue for emissions. This is the chimney seen at the site today.
In the 1860s three further beam engines were acquired as the Cornish beam engine was not providing sufficient power. New buildings had to be constructed to house these engines, as well as a boiler house and a coal store.
In the 1880s a new pair of American turbines were added to the turbine house which necessitated the extension of the existing building to the north. This work was completed in 1888. A stone plaque to the north gable, visible from the road, notes the names of the mayor, engineer and others who opened the building. The waterwheel, now no longer needed, was dismantled in 1889.