
Water would be carried to the west of Oxford in addition to the capacity of the River Thames
Oxfordshire will receive £26m to avoid homes and businesses from being flooded.
The government funds will go towards a £125m project to carry water to the west of Oxford via a four-mile channel.
A total of £108m will go towards transport improvements in the county, which the council hopes will encourage companies to invest there.
The funding is part of £6bn the government is investing around England in local "Growth Deals".
Rodney Rose, deputy leader of Oxfordshire County Council and lead member for flooding, said the flood plans would help keep businesses open during heavy rainfall.
'Science transit'
As part of the government's funding package, £35m will be used to develop "science transit" public transport links between research centres and improvements to the A40.
Funding will also be given for the cycle network in Science Vale, Oxford, into Bicester, and for road improvements in Headington.
Ian Hudspeth, leader of the county council, said this would improve transport connections within the county and encourage science and technology companies to invest in Oxfordshire.
The funding is the first instalment of £12bn the coalition said it was investing.
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