An historical canal is set to be restored in order to prevent a stretch of railway from further flooding.
In November, a section of the Midland Mainline flooded at Draycott, Derbyshire, preventing trains from running between Derby and Nottingham.
The area has flooded 19 times in eight years, costing about £2m and causing delays for passengers.
Network Rail is contributing £350,000 to the cost of restoring part of the Derby and Sandiacre Canal.
In 1999, a drainage ditch was installed along the canal route to help to prevent flooding and while Network Rail said it did help, increased rainfall has seen more disruption.
The section to be restored, known locally as "The Golden Mile", was infilled in the 1960s after freight trade stopped using the waterway, which dates from 1796.
About 1.1km (0.6 miles) of the canal, as well as low points of the canal bank, will be raised by one metre (3.2ft) to reduce the water flowing on to the rail line.
The Derby and Sandiacre Canal Trust - which is also spending £100,000 on the scheme - has welcomed the investment as a "massive step forwards" in its plans to restore the whole 12-mile (19km) route of the canal between Erewash and Derby.
The trust said the canal will be available to boaters again, having been used as a path since the 1960s.
Chairman Chris Madge said: "Network Rail looked at our plans and thought they would solve the flooding problem.
"We plan to dig the canal out and also restore an old mill adjacent to it as a cafe and community hub."
He said a separate section of the canal was dug out in July and he hopes this new section will be finished by June.