A £100,000 grant has been awarded to Stroud District Council to help the authority with its flagship canal restoration project.
The money will enable SDC to dredge a 320 metre section of the canal between Wallbridge Lock and Lodgemore Bridge.
It was awarded to the council by the Viola Environmental Trust, which said the grant would assist the Cotswold Canals Partnership to realise its £20 million vision of linking the Gloucester Sharpness Canal to the River Thames.
Viola Environmental Trust will now work with the council to confirm the details of the dredging, including its start date.
The canal restoration project has been funded by SDC and the Heritage Lottery Fund.