The project aims to protect over 400 homes and businesses from being flooded by the River Dart in Totnes.
Measures include improving existing flood defences along the river from the mainline railway bridge to the Steam Packet Inn, as well as providing a new flood wall within Morrisons car park, raising Ashford slipway and providing flood resilience measures to individual properties and flood gates.
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Work will first begin on Broadmarsh Industrial Estate, before moving into areas of New Walk, Throgmorton and the Morrisons car park. The scheme is set to be completed by next winter.
Dan Boswell, for the Environment Agency, said: "This is a fantastic milestone for us and the residents we have been working with to help us shape our designs.
"Since the construction of the original defences flood risk has changed and in recent years there have been at least 2 occasions – 2008 and 2014 - where some properties in the town have come close to flooding from the River Dart."
Image: High levels on the River Dart in Totnes, March 2008.
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