Phnom Penh authorities have started to put in place machinery to prepare temporary shelters for more than 150 out of the 572 families living beside the Stung Meanchey canal.
The goal is to rehabilitate the area by making the canal out of concrete.
City Hall spokesman Met Meas Pheakdey said authorities had started to clear the zone under Stung Meanchey sky bridge for affected citizens to stay temporarily.
The move follows an agreement between citizens and authorities.
Mr Meas Pheakday said the renovation and relocation of families would take place in four phases.
The first would involve 153 households who would have access to electricity and water. Security guards would also patrol the area.
Each phase would coincide with furthering the canal rehabilitation, and last around three months. City Hall also decided to provide land titles to the people, with land plots allocated randomly.
Horn Sokhon, a representative of the citizens living at Stung Meanchey canal, said they were ready to live in the temporary shelters, but were still concerned with the security of the locations.
“We’re all worried about safety,” she said.
“The authorities prepare the tents for us, but what about our possessions?
“We do not know where to put them. It is very difficult, but we have to wait for the land title to live legally once the canal is complete.”
In August, Phnom Penh municipal Governor Khuong Sreng promised affected citizens that the land allocation would not require them to pay tax.