Researchers have been awarded £125,000 by the Home Office to study community relations in Burnley.
Burnley was the scene of race riots four years ago
The award is to be shared between Lancaster University and Building Bridges, an inter-faith initiative.
The two organisations said on Wednesday that they would focus on integration between Christian and Muslim groups.
The Lancashire town was the scene of race riots in 2001 which saw violent clashes between gangs of white and Asian youths.
For several hours, separate mobs of youths ran riot in different parts of the town.
Shops were looted and destroyed, cars were burnt out and one of Burnley's best-known pubs was firebombed.
In the four years which have passed since the Burnley riots many local initiatives have sprung up, some of them backed by the local council, aimed at healing wounds in the community.
Researchers are due to publish their findings in 2007.