Glandŵr Cymru, the Canal & River Trust in Wales, has received a grant to maintain a restored stretch of the Montgomery Canal, near Welshpool.
The funds, totalling £250,000, were received by Glandŵr Cymru from the Nature Networks Fund.
Maintenance works to be financed by the fund will include removing areas of silt and dense vegetation that grow over the channel.
There are also planned efforts to collect samples of rare plants and propagate those plants, to reintroduce them back to the canal corridor.
The Heulwen Trust, which provides free trips along the canal on an adapted trip boat for those who are less able, is also set to benefit from the works.
David Morgan, development manager for Glandŵr Cymru, said: "The funding will deliver improvements that will mean this section of restored canal continues to be navigable for boats and brings benefits for local people and biodiversity.
"We're going to be dredging to remove silt and improve the navigation for the Heulwen Trust's boats.
"The canal is well-known for its rare plant species.
"By removing invasive species this will reduce plant competition and we'll also be pruning overhanging trees to reduce shadowing and so improve species diversity.
"The funding will also enable us to install dams, known as leaky dams - a type of natural flood management - that will help prevent silt entering the canal from nearby streams, while also erecting some fencing to protect the banks of the canal.
"We'll also be improving access to nature at Newtown and the Wern Claypits nature reserve, where new interpretation boards are being installed and bridge repairs will be taking place on the boardwalk."
The funding from the Nature Networks Programme is being delivered by the Heritage Fund on behalf of the Welsh Government.
To learn more about Glandŵr Cymru's work, and to find out about how you can support through donations or volunteering, please visit canalrivertrust.org.uk
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