A partnership has been set up to raise money to protect Horncastle and Louth in Lincolnshire from flooding.
The Environment Agency, the county council and East Lindsey District Council say they will contribute to a shared funding pot.
It is hoped that raising money in "small chunks" for a phased approach to the schemes will allow work to progress more quickly.
Both areas were badly affected when rivers burst their banks in 2007.
Two hundred people were forced to leave their homes and taken to rest centres in the county during the summer floods.
The Environment Agency said it was now deciding what the phases could be and how much funding would be required for each one.
Richard Belfield, assistant director for development at Lincolnshire County Council, said: "We are very pleased that the close working relationship formed by the new Lincolnshire Flood and Drainage Management Framework, between the Environment Agency, Internal Drainage Boards and the local authorities, has been able to secure a funding pot to implement these much-needed schemes.
"We are extremely grateful for the co-operation and flexibility of all our funding partners."