Wadi Barada had been the scene of fierce fighting in recent weeks between regime and rebel forces that tested a fragile nationwide truce and left millions in Damascus facing water shortages.
"Our armed forces ... Have accomplished their mission by restoring security and stability in the region of Wadi Barada", the army said in a statement carried by state television.
The announcement came a day after the army entered the water pumping station in Wadi Barada for the first time in four years.
Around 5.5 million people in Damascus and its suburbs have been without water since fighting intensified in the Wadi Barada area in late December.
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