Construction on Theatre Severn, in Frankwell Quay, Shrewsbury, will begin this week with the town's mayor, Roger Evans, cutting the first sod.

A spokesman for Shrewsbury and Atcham Council said the theatre would provide a catalyst for a number of regeneration projects on the river banks.

Theatre Severn will include a 650-seat auditorium, 250-seat studio, a dance studio, rehearsal space and a bar.

The theatre should open in 2008.