The Teeling Whiskey Company said the distillery will be located in Newmarket Square in The Liberties.
A visitor centre is also due to open in early 2015.
The company said it is investing €10m in the project, which will create at least 30 full-time jobs.
Fifty jobs will be created in the construction phase.
The proposed Pot Still distillery will have the capacity to produce 500,000 litres of whiskey on an annual basis.
It will consist of three traditional copper Pot Stills, reviving the traditional style of the old Dublin distilleries.
Managing Director Jack Teeling said: "We are proud to be returning to our ancestral distilling roots, which trace back to 1782 in The Liberties.
"This project will bring distilling back to an area of Dublin long associated with world class whiskey, which at one stage had 37 different operational distilleries."
Irish whiskey has enjoyed a renaissance in the last five years, with sales growing from 4.4 million cases in 2008 to 6.5 million in 2013.
"It is unquestionable that there has been significant growth in the Irish whiskey market worldwide, particularly in the US, and we want to be the leaders in creating a bright new future for Irish and Dublin whiskey," Mr Teeling said.
I for one cant wait for it to be up and running as this whiskey is a joy to behold