A project to develop an arts cafe on the site of the old bandstand on the Lawn, Dawlish, has received a £26,500 cash boost.
The money, which will be used to test the scheme's feasibility, has come from the latest wave in the government's Sea Change programme, designed to rejuvenate England's coastal resorts through investment in culture and heritage.
The cash for Dawlish is part of £2.7 million purse being shared out across the country.
Barbara Follett, culture and tourism minister, said: 'Our seaside towns have fascinating histories and unique cultural traditions which we must preserve and strengthen so they can be enjoyed for hundreds of years to come.
'These projects will help to restore people's pride in their towns and help families of the future to enjoy great seaside holidays like the ones so many of us remember from our youth.'
More good news emerged when Dawlish Town Council announced the latest stage in the town's regeneration project.
Exeter firm LHC has been appointed to carry out further research into practical 'quick win' projects to take the area forward.
Unlike the earlier Yellow Book review LHC will be asked to consider not just the town centre but neighbouring communities such as Holcombe.
The man in charge of the project management team, Cllr Geoff Wills, said Devon, Teignbridge and Dawlish councils had each contributed £20,000 to the LHC review which should produce results by September.
'This is really the next step forward to progress the Yellow Book report and we don't want LHC to be too blinkered, we want them to think outside the box,' he said.
'We are keen to identify quick win solutions which might be as simple as making sure our shops and streets are clean and tidy.
'We also want to consider major projects but whatever LHC report it will be put to the public for comment before any policy is drawn up.
'What we hope will come out of all of this is a long-term 20-year living plan that can change and adapt to the town's needs.'