Bristol has been named the region's top digital city, scooping £120,000 in the government's Digital Challenge.
It had already been awarded Science City status by the government and has also been named European City of eDemocracy for its wi-fi network.
Bristol is now in the running to win £7m in the national final.
The team behind the project, named "Connecting Bristol" included business leaders, community groups and council representatives.
Councillor Barbara Janke said the prize would help them further develop their bid.
She said it would enable them "to look at new ways of using new technologies and connections to improve services for our local communities, particularly the most disadvantaged".