The Ontario Trillium Foundation is providing funding for the Goderich to Guelph multi use Rail Trail.
A Capital Grant has been approved to encourage active residents.
The $150,000 grant will be spread over 12 months to construct the trail.
It's hoped that by providing the infrastructure for physical activity, it will encourage more active lifestyles.
It's expected to provide recreation for 10,000 people in the region.