Twenty-two new pitches for travellers costing £1million are to be created on three sites across Shropshire in a move hailed by council bosses as 'good news'.
The money is part of a £60m Government package to provide hundreds of authorised pitches nationwide.
It is hoped that more official sites will stop abuse of the planning system and improve relations between travellers and residents.
Parkhall, in Oswestry, will receive £520,000 to create an extra 10 pitches. The application is going through the planning process.
Each pitch will accommodate one family and include an amenity block, hard standing to accommodate one touring caravan, a static home and room for two vehicles.
A site in north Shropshire will receive £416,000 to create eight pitches, while a site in south Shropshire will be given £208,000 to build four.
The sites have not yet been revealed.
John Taylor, gypsy liaison officer at Shropshire Council, said he was pleased with the announcement.
He said: "This is good news for the travelling community and subject to planning consent will ease the shortfall of pitches identified in Shropshire."
The money is being awarded at the same time as new powers are given to local authorities to tackle unauthorised traveller sites and abuse of planning permission.