The Somerset Levels will receive a £1.8m grant over six years from the Regional Development Agency.
The cash will become available for specific projects - managed by Somerset County Council and its partner agencies - in early 2009.
The area benefiting stretches from Burnham and Highbridge to Martock and South Petherton, including Langport, Street and Glastonbury in the east.
A council spokesman called the grant "terrific news for the levels".
Councillor Alvin Horsfal said: "The funding will help us to enable the area's rural communities to look at new ways of strengthening the local economy and improving quality of life for residents."
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