The "eyesore" derelict Redruth Brewery site at the gateway to Redruth is set to be transformed thanks to £1.7million from the European Regional Development Fund.
The Redruth Brewery site suffered a devastating fire that destroyed many of its historic buildings in 2011.
This is now set to change thanks to both private and public investment which aims to "unlock the site for future development", including a plan to build housing.
Work will now start on the flood alleviation scheme to get the site ready for redevelopment. The scheme proposed for the site includes a mix of cultural buildings, public spaces, workspaces and housing.
The creation of Kresen Kernow, the new archive centre for Cornwall, will be part of this.
The public money will be used in combination with private investment from the owners of the site.
Horace Yao, chairman of Sino Land Limited, owner of the site said: "This funding, along with our contribution of £600,000, will enable the master plan for the whole site to move forward so that Redruth Brewery can, once again, become a thriving part of the community.
"Work is due to start as the site is cleared and modern buildings are demolished, currently heritage building professionals are looking at the remains of the historic brewhouse to see what can be kept and incorporated into the new developments as the site is transformed into a space the whole community will be able to use.
Cornwall Council leader John Pollard, said: ‘I am pleased to see European money being used to unlock areas of regeneration for future growth. The funding will enable an area of historical importance to continue to thrive into the 21st Century with community, culture and job creation at the heart of the regeneration of the site.’