The project will be protect more than 660 homes/businesses from coastal flooding at Starcross and Cockwood.
At Starcross, two new floodgates will be installed at Church Road and Generals Lane slipway, while the car park levels at the Fishing and Cruising Club will also be raised.
Elsewhere, the harbour wall in Cockwood will be improved with a raised level along Dawlish Road in line with predicted sea level rises. The six-month scheme is scheduled to be finished by summer.
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To carry out the works, the road around Cockwood harbour, including Church Road and Dawlish Warren road, has been closed to traffic. Pedestrians will continue to have access.
An Environment Agency spokesperson said: "The storms hitting our coast in the past week demonstrate the importance of tidal defences. We are making a number of improvements to increase the level of flood protection in this area.
"Across England we are investing £2.6 billion in over 1,500 flood and coastal schemes to help protect homes and businesses at risk. This important scheme has been designed to reduce the risk of tidal flooding to more than 660 residential and commercial properties."
(LM)
