Windermere Steamboat Museum has been awarded a grant of £9.4million from the Heritage Lottery Fund towards the development of the new museum.
The museum is designed by Carmody Groarke following a successful win in the RIBA Competition held in 2011.
The HLF funding, combined with the match funding rasied to date, will enable the Lakeland Arts to continue developing the plans for the new Museum as a world-class attraction on Windermere including new exhibitions and displays telling the stories of boats and people on the lake.
The project includes a new wet dock so visitors can see boats displayed in the water and a publicy viewable conservation workshop. Construction is due to start in 2014.
Gordon Watson, Chief Executive, Lakeland Arts said: "We are delighted that the Heritage Lottery Fund has confirmed the grant to the Museum.
"Immediate steps are to complete design development of Carmody Groarke's RIBA competition winning scheme so that construction can start next year.
"We are looking forward to re-opening the Museum and welcoming visitors to enjoy the wonderful collection of Windermere boats and take part in exciting new activities and events inspired by the collections and beautiful site."
