 Several building will soon be demolished under the plan |
A disused tannery will be demolished after the government approved a �13m plan to revitalise the site.
The cash will mean the Morlands site on the outskirts of Glastonbury will be transformed with new roads, refurbished houses and a skateboard park.
There will also be space for small and medium sized businesses.
After Wednesday's official announcement, the South West Regional Development Agency (RDA) said it would now press ahead with redeveloping the rundown area.
'Excellent news'
Gordon Woodend, of the RDA, said: "We are delighted that the Department of Trade and Industry has agreed the funding to progress the job of regenerating the former tannery site.
"The hard work that has been put in to planning the site by the local community and partner organisations has finally paid off.
"After years of lying derelict, the regeneration of Morlands will be starting very shortly, and the site will be transformed."
The next stage would involve demolishing selected buildings and separating waste from materials which could be recycled at the Somerset site, he said.
Rupert Cox, of the Federation of Small Businesses, said: "This is excellent news for everyone associated with the project and also for the wider community."
Alan Gloak of Somerset County Council added: "I am delighted that this funding has been secured as this vindicates all the hard work that has gone into redeveloping the Morlands site."