The project will be in Sarapiquí canton and require an estimated US$5mn.
Some will be to treat wastewater and others will be used for solid waste.
La Paz mayor Luis Revilla last week closed the dump after experts deemed the site unsafe despite holding a 10-year environmental license since 2010.
The public works minister refuted a press report that said the new bill would allow water right holders to never relinquish them.
The Brazilian utility will invest some US$2mn in Palotina.
The river is the source of water for Minas Gerais capital Belo Horizonte.