It is hoped the waterpark will attract international tourists
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An investment of nearly £2m has been announced for the Cotswold Water Park on the Wiltshire and Gloucestershire borders.
Proposals for the tourist attraction near Cirencester include a new visitor centre, a leisure superstore and a luxury hotel.
A network of footpaths and cycle routes is also planned.
It is hoped that the scheme will double visitor numbers to one million a year.
"Environmentally-friendly"
The £1.8m project is likely to bring about 25 extra jobs.
The water park, a haven for wildlife, covers 40 square miles and was created 50 years ago through gravel extraction.
As well as water sports, visitors enjoy relaxing on a shore - it has the country's only inland Blue Flag beach.
The latest developments are being described as "environmentally-friendly" and are backed by David Bellamy, the park's patron.