Work is expected to end in 2009
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Work on a £200m development of Gloucester Docks is expected to begin next summer.
Developers claim the revamped shopping and leisure complex will create more than 2,000 jobs and attract three million people a year.
The first work will be to build a bridge across the Gloucester-Sharpness Canal to link the inner relief road and the much publicised South West bypass.
This should take traffic away from the city centre, say developers.
Other plans for the 60-acre site include a 90-bed hotel, homes, a supermarket, designer outlets, bars and restaurants.
The South West Regional Development Agency is contributing £10m and work is expected to finish in 2009.
British Waterways and the development company Peel Holdings have been working on the idea with Gloucester City Council since 1999.