The Town Council awarded a £15,000 grant to the Cotswold Canals Trust.
The money will go towards buying a work boat or a mud hopper. It will be used for maintenance of the canal and to prevent the channel from being blocked by silt from the feeder streams.
The boat would be branded with the Town Council’s name.
Councillor Steve Hurrell said: “The benefit of the canal to the town is going to be enormous. Silting of the canal will be an ongoing issue so we think it is a good idea to help the Canals Trust invest in essential equipment and the best way for us to provide support for the project.
The Cotswold Canals Trust also applied to the Town Council for a further £25,000 for visitor moorings in the length of canal just west of Wallbridge.
Councillors turned down this application stating they wanted to wait and see if the Trust was successful in its Lottery Fund bid for the next phase of the restoration. The Trust will be applying for £15 million lottery funding in November.
Mayor Kevin Cranston said: “It is a clear demonstration of the Town Council’s commitment to the bid to Heritage Lottery Fund for phase 1b of the canal restoration. Once that is completed Stroud will become a proper canal town again.”
Ken Burgin, Chief Executive of the Cotswolds Canals Trust, said: “The Trust greatly appreciates the support Stroud Town Council gives to the canal project and the importance with which it is viewed.
“This latest decision supports the volunteers by helping to provide the boats needed to enable them to maintain the restored canal through Stroud.”