A Lawrence contractor will be paid $600,000 to extend municipal water service to the east side of Lawrence Municipal Airport, a project commissioners hope will help spur millions of dollars in economic development.

Commissioners accepted R.D. Johnson Excavating Co. Inc.’s bid to install the water line, to be financed by bonds backed by revenues generated from city water customers.

City officials have heard from two companies interested in locating operations at the airport. The operations would be expected to invest $4.4 million in their projects and employ as many as 50 people combined.

City staffers are conducting a study to determine how to extend sewer service to the airport, to replace the airfield’s existing septic systems. That report is due by the end of the year, and officials are hopeful the project will cost less than the remaining $1.4 million they have budgeted for water and sewer projects involving the airport.