The work is being funded by a £360,000 Government grant and is part of a project to protect businesses along this vital stretch, following the completion last year of the River Lune flood wall.
This next stage will see the excavation and construction of a pump chamber housing two automated pumps. Excess surface water in extreme storm events will be discharged through new outlet pipes into the River Lune.
To protect the pump itself, the control panel will be installed on an elevated plinth to give additional protection to the electronics and switch gear.
VBA, who completed the River Lune flood defence wall, will be undertaking the work, which will last for approximately 13 weeks.
Councillor Erica Lewis, cabinet member with responsibility for flood prevention, said: “It is exciting to see work begin on this project. This stretch of Caton Road is vital to our local economy, being home to businesses that employ thousands of people.
“We can't prevent all flooding but this scheme, combined with the flood wall which was completed just last year, will make a huge difference.
“My thanks go to the council’s engineering team, who have worked tirelessly to bring this scheme, and the vital protection it will bring to safeguard vital infrastructure and jobs, to fruition.”
About 55,000 homes around Lancaster were cut off for days after the electricity substation on Caton Road was flooded during Storm Desmond in 2015.