The Cornish village of Boscastle is to get £1.5m, including Objective One money, to help its regeneration.
Some of the money will be used on a new village trail
The bid for the money was led by the Boscastle Regeneration Steering Group, set up by North Cornwall District Council after August 2004's flood.
The council said the cash would be used to improve services and facilities, to make the area more attractive and help support the local economy.
It will help build a new village trail, a visitor centre and improve parking.
About £707,000 of Objective One investment will come from the European Regional Development Fund
This will be match-funded by the main agencies involved to deliver a package of projects worth £1,473,100.
Boscastle ward councillor Janey Comber: "This regeneration scheme is not simply about reinstating what was lost in the flood. It is about improving facilities and enhancing the village to boost the local economy and make Boscastle even more attractive for everyone."
Carleen Kelemen, director of the Objective One Partnership, said: ¿This project will help to rebuild and improve an historic Cornish village where the residents survived a terrible natural disaster.
"The combination of restoration, improvement and new build will help to ensure the future for Boscastle by attracting many more visitors, supporting the residents and creating jobs.¿
More than 100 people were rescued on the 16 August 2004 when a 3m (10ft) wall of water crashed through Boscastle.