The first phase planning approval covers the creation of a 1,200 sq m canal basin which will form the terminus to the restored Chesterfield canal network.
Also included is the creation of a new lock, and extensive service diversions and outline planning application is scheduled for later this year.
Construction is expected to start on site in October following assessment of tender submissions from shortlisted contractors. Work should be completed by March 2009.
The project is being delivered in partnership with Chesterfield Borough Council.