Part of the Ashby Canal in Leicestershire is set to undergo a £500,000 restoration after the East Midlands Development Agency (EMDA) agreed to provide funding for the scheme.

The project will form part of the wider £14m regeneration of the canal between Snarestone and Moira, which is being led by Leicestershire County Council (LCC), and has already seen 1.5 miles (2.4km) restored at the centre of the National Forest in Derbyshire and Leicestershire. Deep coal mining in the area caused subsidence, which led to the closure of the Ashby Canal between Snarestone and Moira in 1966, and now the council plans to reopen the section with the help of British Waterways.

Work will include the installation of a stop gate, a temporary slipway, an improved turning point for boats, and a 100m (328ft) wetland nature reserve attached to the existing canal at Snarestone. LCC cabinet member for community services, Ernie White, said: "All we needed was the EMDA money, and now we can get started. EMDA backing reflects the benefits of the project for tourism, the development of the National Forest, and the local economy."

Councillors are now designing the next phase of work, as well as seeking ways in which to fund the extension of the canal to Ilott Wharf and Measham.