The Cotswold Canal Partnership received the top honour in the partnership category at the 2012 Waterway Renaissance Awards.
The Partnership includes Gloucestershire County Council, Stroud District Council, Stroud Town Council and the Cotswolds Canals Trust.
The project covers the new Stroud Brewery Bridge, the canal visitor centre, the restored Wallbridge Upper Lock, the Lock Keeper’s Cafe and the general upgrading of the area.
Countless volunteers have donated hundreds of hours’ work to the project and volunteer Wendy Townsend saw the potential and opened the Lock Keeper’s Cafe.
Stroud town councillor Steve Hurrell said: “The completion of the Wallbridge project in Stroud town centre was pivotal to ongoing improvements and regeneration in this area of Stroud, linking its industrial past with a viable future for both it and the whole canal.
“The Town Council gave a grant to support the establishment of the Cotswold Canal Trust’s Visitor Centre beside Wallbridge Lock.
“We are very committed to ensuring this area is a people-friendly zone to allow local residents and visitors to Stroud to enjoy and make full use of the canal-side opportunities.
“We hope this shows the way for further co-operation in future between all interested parties to improve the public facilities and environment close to Wallbridge.”
Councillor Hurrell said the national recognition would help the project as it continues to raise money for the next stages of canal regeneration.
“It is essential that the proposed future developments aim to integrate the town and its economic activities with the canal and the whole of the River Frome Valley,” he said.
“This Partnership Award shows how many differing groups in Stroud can all work together very effectively for the benefit of the whole community.”
Clive Field, Manager of the Cotswold Canals Trust Visitor Centre & Canal Shop, said: “Stroud Town Council were the first to step forward in support of the Cotswold Canals Trust Visitor Centre project. This resulted in further financial support from Gloucestershire County Council, Stroud District Council and the Inland Waterways Association.”