More than 450 village homes and businesses have received a flood protection boost following the announcement of £4m funding.
The money will be used to construct defences that will reduce the risk of flooding in Croston.
The Department for Agriculture, Food and Rural Affairs and the Environment Agency have confirmed that more than £37m has been set aside to construct and maintain flood defences across Lancashire in 2014/15.
The Croston Flood Risk Management Scheme will result in a flood storage area on a site upstream of Eccleston Bridge on the River Yarrow.
Excess water will be stored behind an embankment dam that is to be constructed until it is safe to release it back into the River Yarrow.
A public drop-in session presented and discussed details of the new scheme - construction is expected to start Winter 2014 - with the Environment Agency and its partners Lancashire County Council, Chorley Council and United Utilities, in Croston Methodist Church hall at the end of last month.
Kath Almomnd, who is chairman of the Lower Yarrow Flood Action Group, said: “It was very well attended.
“People are concerned even though we have not been flooded recently.
“Our sympathies go out to people down south.”
She added: “We are very optimistic it will work out.”
County Councillor Janice Hanson, cabinet member for public protection, said: “The scheme in Croston will build on the work we’re already engaged in with partners to improve drainage, and will enable us to develop a lasting solution to the flooding issues the village has suffered in recent years.”
Consultation on the draft Local Flood Risk Management Strategy for Lancashire is open until Friday, February 21, with the intention of adoption in early April 2014.
To respond, visit www.lancashire.gov.uk and search for “Flooding”.