The new build in Smethwick forms part of construction for the Games, which are being held in Birmingham in 2022.
Sandwell Council's deputy council leader councillor Maria Crompton said: “It’s fantastic news that work is now well under way on the new Sandwell Aquatics Centre in Smethwick.
“Our construction partner Wates are now on site and making real progress, including on the foundations for the centre.
“This will be a state-of-the art facility that will create a lasting legacy for health and wellbeing in the local community.”
Wates will also be creating jobs locally and investing in the community, with businesses supplying goods and services for the build, as well as taking on apprentices.
The company will also engage with schools to provide work experience placements on site, encouraging young people into construction and giving them new skills.
Work on the £73m project is set to be completed in spring 2022. The facility will include a 50m Olympic-sized swimming pool, as well as a 25m diving pool, community swimming pool and seats for up to 1,000 spectators.
Further facilities at the aquatics centre will include three activity studios, two four-court sports halls, a 108-station fitness suite with a 25-station ladies-only gym, dry diving facilities, an indoor cycling studio, a new football pitch, a café, and changing facilities including a sauna/steam room. It will also have a new urban park will feature a children’s play area.
The centre is set to host swimming and diving events during the Commonwealth Games, which runs from July 27 to August 7, 2022.
The building will be officially open for use by the public in May 2023.