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====Phase 1b==== {{main|Stroudwater Navigation#Restoration}} The second phase of the restoration programme covers the length of the Stroudwater Navigation between the Ocean Railway Bridge, Stonehouse, and Saul Junction on the [[Gloucester and Sharpness Canal]], a distance of about {{convert|4|mi|km}}. The simpler work includes construction of two new locks, restoration of a further six locks, construction of several minor road bridges, and reinstatement of about {{convert|1|mi|km}} of in-filled canal.<ref name="RestorationPhase1b"/> This section poses some significant engineering problems. A new railway bridge was required at Stonehouse, where the canal had been culverted underneath the [[Cross-Country Route|Bristol–Birmingham line]].<ref name="RestorationPhase1b"/> Since the canal was abandoned, the [[River Frome, Stroud|River Frome]] and the Oldbury Brook have both been diverted to use part of the canal bed.<ref name="RestorationPhase1b"/> Most significantly, the original route has been divided by both the construction of the [[M5 motorway]] and development of the [[A38 road|A38]] trunk road. Plans to overcome these obstacles were produced, in anticipation of the necessary funding becoming available.<ref>{{cite web |url=http://community.stroud.gov.uk/_documents/2_Cots_Project_Atlas_Page_36_and_37_Occupation_Bridge_to_Westfield_Lock.pdf |archive-url=https://web.archive.org/web/20120314142311/http://community.stroud.gov.uk/_documents/2_Cots_Project_Atlas_Page_36_and_37_Occupation_Bridge_to_Westfield_Lock.pdf |archive-date=14 March 2012 |title=Occupation Bridge to Westfield Lock |publisher=Cotswold Canals Partnership |url-status=dead}}</ref> Bids for [[Heritage Lottery Fund|Heritage Lottery funding]] were rejected in May 2012 and November 2015. A revised bid was submitted in November 2017, and following criticism of the lack of investment by partners in the project, was backed by a promise of £3 million from [[Stroud District Council]], £700,000 from [[Gloucestershire County Council]] and £675,000 from the [[Canal & River Trust]], who also pledged practical support. In addition, the Cotswold Canals Trust offered financial assistance and volunteer labour. A development grant of £0.8 million was received from the Heritage Lottery Fund in April 2018, which led to the award of £8.9 million in October 2020.<ref name="RestorationPhase1b"/> A further boost was the granting of £4 million from [[Highways England]] in May 2019, to cover the cost of tunnelling under the A38 roundabout and other environmental projects along the "missing mile", the new route of the canal to replace the section obliterated by road construction and infilling.<ref>{{cite web |url=https://www.stroud.gov.uk/news-archive/missing-mile-of-canal-can-be-restored-thanks-to-4million-highways-england-grant |archive-url=https://web.archive.org/web/20210124085910/https://www.stroud.gov.uk/news-archive/missing-mile-of-canal-can-be-restored-thanks-to-4million-highways-england-grant |archive-date=24 January 2021 |url-status=live |title='Missing mile' of canal can be restored thanks to £4million Highways England grant |publisher=Stroud District Council |date=8 May 2019}}</ref> Phase 1b, which became known as Cotswold Canals Connected in 2018, is expected to be completed by 2028.<ref name="RestorationPhase1b"/><ref name="StroudUpdate24"/> Stroud District Council decided that the infrastructure costs for the development of Brimscombe Port were too high to entice developers to the scheme, and made a bid to [[Homes England]] in 2015 for public funding. They received £2 million from this source, to which they added another £2 million as match funding. They also received £776,000 from the One Public Estate Land Release Fund, which is given for the development of brownfield sites. Planning permission was obtained on 24 March 2021 for the development of the port, including reinstatement of the canal, basin and various bridge works. The initial work includes demolition of modern additions to Port Mill,<ref name=dev-plan>{{cite web |url=https://www.stroud.gov.uk/environment/brimscombe-port/brimscombe-port-redevelopment-plans |archive-url=https://web.archive.org/web/20211103062409/https://www.stroud.gov.uk/environment/brimscombe-port/brimscombe-port-redevelopment-plans |archive-date=3 November 2021 |url-status=live |title=Brimscombe Port redevelopment plans |publisher=Stroud District Council |year=2021}}</ref> so that a new canal channel and river bed can be constructed further to the south than formerly, with the new river channel replacing the previous culvert under the modern parts of Port Mill.<ref>{{cite web |url=https://www.stroud.gov.uk/media/1485866/item-9-appendix-a-ii-infrastructure-_approved-general-arrangement-drawing.pdf |archive-url=https://web.archive.org/web/20210628121211/https://www.stroud.gov.uk/media/1485866/item-9-appendix-a-ii-infrastructure-_approved-general-arrangement-drawing.pdf |archive-date=28 June 2021 |url-status=live |title=Infrastructure General Arrangement Drawing |publisher=Stroud District Council |date=10 June 2021}}</ref> In July 2022, the council selected St. Modwen Homes as the developer to work on the project.<ref>{{cite web |url=https://www.stroud.gov.uk/environment/our-vision-for-brimscombe-port |archive-url=https://web.archive.org/web/20220729162457/https://www.stroud.gov.uk/environment/our-vision-for-brimscombe-port |archive-date=29 July 2022 |url-status=live |title=Our Vision for Brimscombe Port |publisher=Stroud District Council |year=2022}}</ref>
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