TODMORDEN town council will contribute £30,000 of funding towards a project to create an attractive gateway site in the town centre.
The town council will work in partnership with Todmorden Pride and Calderdale Council on the project, which is aiming to make improvements to the Lever Street car park and create a new access point to the Oxford Street car park.
The groups hope this will attract more visitors into Todmorden town centre and increase the number of people going to Bramsche Square and the market.
Town councillor Joe Rez said: “I would like to support this scheme. This is what we have been talking about for a long time, supporting this sort of partnership.”
Coun Hilary Myers thanked Todmorden Pride for “an excellent initiative”.
David Storah, from Todmorden Pride, said the project is looking to improve the canalside in Todmorden by creating disabled access to the canal bank, providing new paving and additional planting.
“We hope to continue, in a small way, the ongoing improvements to the town,” he said.
“What we are wanting to do is set a standard, improve the town and make it more attractive.”
Mr Storah said a bid has been submitted for lottery funding to help cover the costs of the project.
Anne Holdsworth, environmental projects officer from Calderdale Council, said: “In an ideal situation, we are looking to start work on the project in February.”