The former Gleaner Oil site is to be brought back into use as a waterfront community and businesses hub.
The council has agreed to provide up to £250,000 of funding from its Tarbert and Lochgilphead Regeneration Fund, which will go towards the first phase of the scheme to redevelop the derelict site.
The first phase will see the redevelopment of the 'Egg Shed' building including a new extension and the former garage. The buildings are intended for a range of uses including exhibition space focusing on the heritage of the area and the Canal. New parking facilities and improved walking and cycling links will also be developed.
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The project is taken forward in partnership with Scottish Canals.
Council Leader Aileen Morton said: "The council is determined to work in partnership with Scottish Canals and the community to deliver projects that will create jobs and help to grow the population of the area, which will help boost our local economy.
"The redevelopment of the redundant and derelict Gleaner site has been championed by the local people and is designed to provide a focus for the community and attract more visitors to the area.
"There is no doubt that it will contribute to the wider regeneration of the Mid Argyll area as well as providing economic opportunities for the local community. I look forward to seeing it being realised and making a real difference to Mid Argyll."
(LM)
