A £600,000 cash investment has been agreed towards plans to upgrade the waterfront at Stranraer and Loch Ryan.
Improvement plans for the harbour area have taken a step forward
The European funding will enable preparation works to continue towards the establishment of a major marina development in the area.
The financial package has been welcomed by the Rhins Renewal Action Group, which will oversee the plans.
It is now hoped the £1.2m project will be able to start early next year, subject to a contract being awarded.
The latest funding will got towards phase one of the area's Breakwater Project.
Developments of the harbour are seen as important for the regeneration of the town in light of Stena Line's plans to leave Stranraer for Cairnryan.
Stranraer is also still in the running to secure a casino licence later this year, which is seen as a vital part of the overall development of the area.
The funding announcement was made by Deputy Minister for Enterprise and Lifelong Learning Allan Wilson.
The news was welcomed by Sam Scobie, chairman of the Rhins Renewal Action Group.
"This is fantastic news," he said.
"Having projects like this come together with a ministerial announcement really helps the profile for the overall waterfront redevelopment."
He paid tribute to the partnership working with the local council and enterprise company, who are funding partners in the project.