The historic Stroudwater Canal has been awarded £6.46m by The National Lottery Heritage Fund to restore vital sections of the waterway. A major part of the project includes reinstating the ‘missing mile’, which will involve taking the canal beneath the M5 motorway, reconnecting the currently landlocked Stroudwater Navigation with the national inland waterways network.
The project, led by Stroud District Council in partnership with the Cotswold Canals Trust will create a new fully accessible towpath connecting Stroud to Gloucester and Sharpness, as well as creating a vital wildlife corridor linking habitats from the east to the west.
A programme of community activity will broaden participation and improve physical access to the canal, including new canal-side spaces for communities to gather. Canal heritage will be taken into community settings to extend its reach beyond the waterway and the Stroudwater Navigation Archive - thought to be the oldest canal archive in the world – will offer possibilities to tell the story of the canal in new and exciting ways.
Young people will play a key role in the project, contributing through volunteering opportunities, engaging with canal heritage in the classroom and active involvement in decision-making on the future of the canal.
The investment will bring huge benefits to the region, including reconnecting local communities in the Stroud Valleys, Stonehouse, Gloucester, and Severn Vale with one of England’s important industrial mill areas. It will support tourism, unlock economic opportunities and enhance the natural environment through conservation and biodiversity initiatives - bringing new life to a historic waterway and creating a vibrant, sustainable future.
The Environment Programme, led by Gloucestershire Wildlife Trust, has already delivered major improvements to the canal’s natural surroundings. These include creating a wildlife corridor along the canal with new wetlands areas, the restoration of a traditional orchard and four kilometres of new hedgerows.
Over the last four years, over 750 volunteers have worked on the restoration of the canal, supported biodiversity and wildlife improvements and facilitated community activities - providing a total of 93,600 volunteer hours.
This announcement follows the launch of the recent Canal & River Trust report, The Vital Connector for Nature and People, which demonstrates how the UK’s canal network serves as a vital urban connector, supporting nature and offering free open access for communities - providing a unique opportunity to address the challenges of biodiversity loss, low nature connectedness and high wellbeing inequalities.
Taryn Nixon OBE, Trustee and Chair of the England, London & South Committee, Heritage Fund, said:
“The restoration of the Stroudwater Canal is a powerful example of heritage literally connecting places, people and nature for the benefit of the future. Thanks to National Lottery players, this ambitious, strategic project will not only revive globally important industrial heritage, and create a connected nature corridor, but will unlock lasting benefits for local economies and peoples’ health and wellbeing. We’re proud to invest in a vision that celebrates heritage while shaping a sustainable future for generations to come.”
Chloe Turner, Stroud District Council Leader, said:
"We're enormously grateful for the ongoing support of the National Lottery Heritage Fund to the Cotswold Canals Connected project. The canal restoration is a key project in our Council Plan, with cross-party support for the many benefits for Stroud district's communities, heritage, nature and local economy that the restored canal will bring.”
David Hagg, Chair of Trustees, Cotswold Canals Trust, said:
"This incredible support from The National Lottery Heritage Fund marks a truly historic moment for the Cotswold Canals Trust. It brings us another step closer to realising our long-held vision - reconnecting the Stroudwater Navigation to the national canal network for the first time in over 70 years. This achievement is a testament to the passion, dedication, and thousands of volunteer hours contributed by our members and supporters. We are immensely proud of what has been accomplished so far and excited to see how this funding will help us restore the final stretch, create new opportunities for communities, and protect the canal’s natural heritage for generations to come."
Emma Hutchins, Director of Nature's Recovery at Gloucestershire Wildlife Trust, said:
"Gloucestershire Wildlife Trust is pleased to support Cotswold Canals Connected. This important funding will ensure key habitats along the corridors of the river Frome and Stroudwater Canal will continue to be created, restored and enhanced - boosting wildlife connectivity between some of Gloucestershire’s key Nature Recovery Zones. We will continue to work in partnership to complete two fantastic new wetland reserves which future generations will be able to enjoy and be vital feeding grounds for a wealth of species."
The canal will celebrate its 250th opening anniversary in 2029. The National Lottery Heritage Fund has to date awarded £9,799,000 to the Cotswold Canals Connected project. Today’s announcement is a further grant of £6.4million which brings total funding to over £16m.
The Cotswold Canals Connected Project is being delivered by a partnership of organisations, including Stroud District Council, Cotswold Canals Trust, Gloucestershire Wildlife Trust, Gloucestershire County Council, and the Stroud Valleys Canal Company.
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Background information
Stroudwater Canal – Historical Background
The Stroudwater Canal, completed in 1779, stands as one of Gloucestershire’s earliest and most significant industrial achievements. Designed to connect the River Severn at Framilode with the market town of Stroud, it was conceived and financed by local merchants and mill owners seeking a reliable route for transporting coal, stone, and timber to fuel the thriving woollen industry of the Stroud Valleys. For more than a century, the canal served as a lifeline for the region’s mills and workshops, enabling efficient trade and supporting communities along its 8-mile stretch. Its locks, bridges, and wharves became symbols of innovation and economic progress.
By the mid-19th century, however, the rise of the railway network brought rapid decline. Commercial traffic dwindled, and by the 1950s, many sections of the canal were derelict or filled in. In the late 20th century, local volunteers formed the Cotswold Canals Trust to save and restore the canal. Over decades of dedication, they have rebuilt locks, dredged channels, repaired bridges, and revived habitats once lost to time.
Today, the Stroudwater Canal forms a key part of the Cotswold Canals Connected project - one of the UK’s largest and most ambitious waterway restorations. Its revival not only honours the region’s industrial past but also enhances biodiversity, supports recreation and tourism, and reconnects local communities to their historic waterways for generations to come.
About The National Lottery Heritage Fund
Our vision is for heritage to be valued, cared for and sustained for everyone, now and in the future. That’s why as the largest funder for the UK’s heritage we are dedicated to supporting projects that connect people and communities to heritage, as set out in our strategic plan, Heritage 2033. Heritage can be anything from the past that people value and want to pass on to future generations. We believe in the power of heritage to ignite the imagination, offer joy and inspiration, and to build pride in place and connection to the past.
Over the next 10 years, we aim to invest £3.6billion raised for good causes by National Lottery players to make a decisive difference for people, places and communities. heritagefund.org.uk Follow @HeritageFundUK on Twitter/X, Facebook and Instagram and use #NationalLottery #HeritageFund
About the Cotswold Canals Trust
The Cotswold Canals Trust is a volunteer-led charity dedicated to restoring, preserving, and promoting the historic Stroudwater Navigation and Thames & Severn Canal - collectively known as the Cotswold Canals. Founded in 1972 as the Stroudwater Canal Society and registered as a charity in 1975, the Trust works to protect this vital part of local heritage while enhancing the canal corridor for nature, communities, and future generations. With over 6,000 members, the largest membership base of any canal restoration project in the UK, and 350 active volunteers, the Trust’s work is powered by volunteers. From rebuilding locks and bridges to improving towpaths, supporting biodiversity, and engaging local communities, their passion and expertise are driving one of the most ambitious waterway restorations in the country. The Trust’s mission is to restore the full navigable route from Saul Junction to the River Thames and to promote a sustainable balance between heritage, wildlife, and recreation.
About Gloucestershire Wildlife Trust
Gloucestershire Wildlife Trust (GWT) works closely with local communities, landowners and partners to deliver much-needed conservation work across more than 1000 hectares of nature reserves, and within the wider landscape of Gloucestershire. This vital work safeguards these remaining special wild places and drives nature’s recovery, working towards a future where the countryside thrives once more with wildlife, wildflowers, trees, butterflies, insects and animals
The charity also delivers a vast range of engagement activities and projects across the county, as well as providing free public access to its nature reserves, enabling people from all backgrounds to spend time outdoors and get closer to nature.
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