The commitment was made in a letter from the minister to McLaughlin, responding to a request for investment in the water and sewerage system in Derry.
Ms McLaughlin had advised the minister about unpleasant sewage smells in the city, in particular close to the Craigavon Bridge.
Said the Foyle MLA: “Everyone who lives or works in Derry knows how bad the sewage smell in the city can be.
“My office gets large numbers of complaints about this, along with concerns about the growing demands on the water supply system.
“I am delighted that SDLP infrastructure minister Nichola Mallon has not only taken these complaints seriously, but has ensured that NI Water has programmed in the investment to deal with this.
“It is yet another instance of the SDLP minister addressing long standing infrastructure weaknesses in the North West that previous ministers failed to resolve.
“I also welcome the commitment given by the minister that additional resources will be allocated to logging the problems of bad odour related to the sewerage system.
“This should assist with both short and long term solutions to this continuing problem, which is extremely unpleasant.
“All this is excellent progress by the minister.”