The "Our City, Our River" project - which sets out to reduce flooding risks for around 2,250 properties in the Derby city and Pride Park areas - has received £2 million funding for its first phase.
The first phase is worth a total of £15.6 million and will provide 1,140 properties with better flood protection, 16 hectares of brownfield land being unlocked for development, 510 new homes and 700 new jobs being created.
In total, up to £12 million could be released from the D2N2 Local Growth Fund after economic benefits can be shown from earlier stages. Bondholder Derby City Council, the Environment Agency and government are also funding partners in the project.
Peter Richardson, Chairman of the D2N2 Local Enterprise Partnership, said: "Flooding is a recurring threat to homes and businesses, with terrible human and economic costs. Our City, Our River is a major scheme aiming to not only protect what is already there but also 'unlocking' opportunities for further commercial land development, including housing, and to enhance the project area's attractiveness for tourism and leisure use. That is why D2N2 is making a significant investment in this project."
Councillor Martin Rawson, Deputy Leader for Derby City Council, added: "I am delighted that the Our City, Our River project has secured funding from the D2N2's Local Enterprise Partnership. This funding will contribute to our objectives of protecting people and property from the risk of flood, while providing an opportunity for our riverside quarter to benefit from significant regeneration. We will see the city centre reconnected to the river, and reap the economic and social benefits associated with a vibrant and reinvigorated riverside community."