By 2013, the aim is to bring 751 hectares of wetlands on Anglesey and Pen Llyn back into peak condition.
Traditional and modern methods are combining to save Anglesey's fens, with a hovercraft clearing the way for livestock to graze the land.
The work on Cors Goch National Nature Reserve is part of Europe's largest wetland conservation project.
Justin Hanson of the Countryside Council for Wales (CCW), said: "Grazing stopped on this part of Cors Goch around 25 years ago. Now, with the help of local contractors and their hovercraft, we are clearing years of unwanted growth."
Mr Hanson added: "After that, local farmers will be able to bring in grazing stock suited to this type of land - traditional, native animals like Welsh Blacks, Herefords or Welsh mountain ponies."
David Lloyd Contractors has bought the hovercraft to carry away sodden, dead vegetation left for years on the Cors Castell part of Cors Goch, near Llanbedrgoch, without damaging wildlife habitats.
Company spokesman, Roger Dean, said: "We've always been committed to protecting wildlife and the environment in the work we do, so we're always prepared to look at new and innovative ways to achieve this.
"With Cors Goch we knew that damage limitation to the site and its habitat was paramount and therefore a different approach to the restoration project had to be found."
The firm will compost the cut vegetation, then later in the spring, farmers will bring their stock to graze the land as they did years ago, preventing the scrub from smothering the site again.
Cors Goch, managed by the North Wales Wildlife Trust, is one of Anglesey's special wetlands, or fens, which depend on peaty soils and a delicate water balance created by the limestone springs.
The CCW claims that with good management it will once again harbour a wealth of rare plants and wildlife, including a great display of marsh gentian in late summer.
The £3.5m LIFE project aims to turn the wetlands of the Llŷn Peninsula and Anglesey into fantastic places for people to visit to enjoy their special, tranquil atmosphere.