The scheme aims to protect around 100 homes and businesses from flooding.
The project includes improved drainage and landscaping next to Toner Avenue School and as part of uncovering the Bede Burn, an attenuation basin will be created to store run-off water during storms.
In addition, the scheme involves managing surface water where problems have been identified around the Monkton Burn, Lukes Lane Estate and Leam Lane area, Mill Lane, Lilac Walk/College Road, Devon Road, Campbell Park Road/ Thirlmere Court and Mountbatten Avenue areas.
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South Tyneside Council is delivering the works with its partners the Environment Agency and Tyne Rivers Trust. Work is scheduled to be complete in the winter.
Cllr Moira Smith said: "We are delighted to see work get underway to reduce the risk of flooding to properties which have been badly affected in the past.
"It is never possible to guarantee that an area will be flood free. However by working with our partners we can certainly help to increase the level of protection and reassurance by delivering long-term sustainable schemes such as this.
"These measures will go a long way to controlling the flow of surface water and diverting it away from local residents and businesses. Once complete, communities will be better protected with the added benefit of an enhanced local environment."
Leila Huntington, Flood Risk Manager for the Environment Agency in the North East, said: "This is an excellent example of partners working together to not only develop a scheme which reduces the risk of surface water flooding but also creates valuable habitat and a space for the community to enjoy."
(LM/MH)
