Whaley Bridge Regeneration Partnership is providing the funding, from High Peak Borough Council's Economic Development budget.

The funding will contribute towards creating formal access points to the towpath at Tesco and the Grade II listed Horse Tunnel, providing new signage, benches and allowing walks to woodland.

Cllr Linda Leather, Chair of Whaley Bridge Regeneration Partnership, said: "We considered the proposals at length and are pleased to provide funding support specifically towards enhancements at the Whaley Bridge end of the Canal. This is an exciting project that will benefit the whole town."

Improving the canal towpath at Whaley Bridge will benefit local residents by making the canal a truly recreational facility helping to attract visitors to the area, and improving the local economy.

The improvements will form part of the £583,000 Destination Bugsworth Project – an East Midlands Development Agency (emda) backed scheme - which will create a pilot waterbus service between Whaley Bridge and Bugsworth Basin, new visitor facilities at Bugsworth and information signs along the canal.

Work to the canal towpath is due to start in September, and follows widespread consultation with local groups and waterway users. Investigation works at the Horse Tunnel are due to take place this month.