A £3m off-road cycling and walking route linking Kingsteignton and Newton Abbot has been approved. Phase One between Church Lane, Kingsteignton and Greenhill Way will be completed this summer.
'This is a good news story,' said Cllr John Hart at Devon County Council Executive on Friday.
Other members said it would benefit residents as well as encouraging tourists to cycle or walk along the Teign estuary.
The route will use an existing right of way between Kingsteignton and the Passage House Hotel, skirting Hackney Marshes, the racecourse and crossing the Teign on a new bridge to land at Town Quay, Newton Abbot. It will pass through the Brunel Industrial Estate, emerging at The Avenue.
A future extension will link to the railway station, and to Torquay Road
and Penn Inn roundabout, with a toucan crossing at the Torquay Road/ Brunel Road junction, linking with Decoy and improving access to Buckland, Milber, Aller, Kingkerswell and Torbay.
The rest of the route is scheduled to be open by 2011-2012.
Costs have more than doubled because Network Rail refused to allow the route to use the existing road bridge access to Hackney Yard, meaning a new bridge will have to be built over the Teign.
Half-a-million pounds is coming from the Sustrans Connect 2 programme. Devon County Council is putting in £2m with the rest coming from developer contributions.
Members were warned that the downturn in house-building means that only £100,000 has been secured so far.
Concerns have been raised over the safety of walkers sharing the path with cyclists.
Cllr Saxon Spence pointed out: 'It only takes one or two cyclists to spoil it for the rest.'
Teignbridge Council raised concerns about the impact of cyclists on the Hackney Marshes Nature Reserve and suggested two users should be segregated.
County officers are confident they will be able to minimise conflict through clever design.