The Montgomery Canal fell into disrepair 60 years ago

Newhouse Lock, near Newtown, Powys, was opened on Sunday by Montgomeryshire MP Lembit Opik, bringing to an end two decades of voluntary restoration work.

Five miles of the canal between mid Wales and Shropshire is still blocked to boats, but it should reopen in about five years, say officials.

The Welsh Assembly Government says this will bring "huge benefits" to the area.

In February, a multimillion-pound plan to reopen Montgomery Canal and with it the promise of 100 jobs, was published in a document and launched in the Welsh assembly and House of Commons.

The first phase of work will cost some �45m and will link Gronwen in Shropshire with Llanymynech in Powys.

Restoring all 21 locks has been a major task Richard Hall, Shropshire Union Canal Society

It could then be followed by a second phase to rebuild the canal terminus in Newtown.

Richard Hall of the Shropshire Union Canal Society said: "All the locks along the entire stretch of the canal are now operative.

"However, it doesn't mean the entire length is in use. There is a small stretch that is still dry, but that should be completed in about five years.

"Restoring all 21 locks has been a major task and has been carried out by volunteers. We celebrated the completion when the final lock was opened on Sunday."

Mr Hall said 25 miles of the canal was in Wales, while a 10-mile stretch was in England.

"The ceremony took place in conjunction with the annual Montgomery dinghy dawdle which passed through the lock as soon as it had been opened," added Mr Hall.

In February, Tamsin Dunwoody, assembly deputy minister for economic development and transport, said the restoration of the Montgomery Canal would bring huge benefits to the area in terms of economic development, tourism and sustainable development.

The 40-year campaign to restore the canal has involved 15 members of the Montgomery Canal Partnership, which includes local authorities, boating, wildlife and heritage organisations.