Plans to build a 560-berth marina with facilities for athletes taking part in the 2012 Olympic and Paralympic sailing events have been approved.
Work on the new marina is set to start in August
Weymouth and Portland Borough Council has given planning permission for the multi-million-pound Portland Marina development at Osprey Quay.
Work will start in August and is set to be finished by the end of 2008.
If it goes to plan, the Dorset town will be the first in England to build a permanent venue for the 2012 Games.
The plans include a marina, sheltered by a stone breakwater made largely from local Portland stone.
There will also be an on-shore reception centre with washrooms, showers and laundry facilities and a restaurant bar overlooking the harbour.
Plans to regenerate and transform the marina ahead of the games were submitted in March after public consultation.
Lord Coe, chairman of the London 2012 organising committee, said the scheme would "transform Weymouth and Portland".
He said it would make "an existing top class venue into a world class training and competition venue equipped to stage major international sailing events and competitions before and after the 2012 Olympics.
"The enhancements will also provide new opportunities and facilities to enable people from a wide range of backgrounds and abilities to experience the thrill of sailing."