The restoration of part of the Ashby Canal in Leicestershire has been given the go-ahead by the government.
A two-and-a-half mile stretch of the canal, from Snarestone to Measham, will be restored in a project by Leicestershire County Council.
The work will reconnect Measham to the national canal network and give boaters a terminus in the village.
The canal currently stops in fields north of Snarestone, but will now run to a new Measham Wharf.
County councillor Ernie White said he was "delighted" that the government had approved the scheme.
He said the restoration will be of great economic and environmental benefit to Measham and the surrounding area.
When the restoration is complete, the Ashby Wolds Heritage Trail will connect it to another section of the canal at Moira.
The Ashby Canal transported coal and other goods for many years, but by the mid-20th century, the northern reaches were hit by mining subsidence. An eight-mile stretch north of Snarestone was abandoned in 1966.